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Stocks that have long histories of dividend growth have stood the test of time. For example, the Dividend Aristocrats, which is a group of just 68 stocks that are S&P 500 components and have raised their dividends for at least 25 consecutive years.

This article will discuss 3 Dividend Aristocrats with dividend yields above 3% and strong prospects for the long run.

Kimberly-Clark (KMB)

The Kimberly-Clark Corporation is a global consumer products company that operates in 175 countries and sells disposable consumer goods, including paper towels, diapers, and tissues. It operates through two segments that each house many popular brands: Personal Care Segment (Huggies, Pull-Ups, Kotex, Depend, Poise) and the Consumer Tissue segment (Kleenex, Scott, Cottonelle, and Viva), generating over $20 billion in annual revenue.

Kimberly-Clark has increased its dividend for 52 consecutive years.

Kimberly-Clark posted second-quarter earnings on July 23rd, 2024, and the results were somewhat mixed. Adjusted earnings per-share came to $1.96, which was 25 cents ahead of expectations. Revenue was off 2% year-over-year to $5 billion and missed estimates by $100 million.

Adjusted gross margin was 36.9% of revenue, which was driven by organic net sales growth, as well as gross productivity gains through the company’s cost-saving efforts. The company saw a 2% increase in price, and a 2% increase in volume and mix during the quarter, both of which helped the top and bottom lines.

With operating margins rising steadily over time, increasing profitability is working to offset somewhat weak revenue numbers. Kimberly-Clark’s management team has continuously extended this initiative, aiming for another $1.5 billion of cumulative savings over the three-year period. This will be a primary growth driver in the upcoming years. We expect 5% annual earnings growth in the years to come.

Kimberly-Clark’s competitive advantage is in its longstanding dominance with a variety of its brands, which are well known in the marketplace. KMB stock currently yields 3.4%.

Essex Property Trust (ESS)

Essex Property Trust was founded in 1971. The trust invests in West Coast multi-family residential proprieties where it engages in the development, redevelopment, management and acquisition of apartment communities and a few other select properties.

Essex has ownership interests in several hundred apartment communities consisting of over 60,000 apartment homes. The trust has about 1,800 employees and produces approximately $1.6 billion in annual revenue.

Essex is concentrated on the West Coast of the U.S., including cities like Seattle and San Francisco.

Essex Property Trust reported strong first-quarter results, reflecting significant growth and strategic advancements. The company announced a notable increase in core Funds from Operations (FFO) per share by 4.9%, which exceeded the initial guidance expectations.

This performance was bolstered by growth in blended lease rates of 2.2%, with renewal leases rising by 3.9% and new leases by 10 basis points. Regionally, Seattle experienced a 3.6% increase in blended rates, while Northern California saw a 2.1% rise, and Southern California reported a 1.7% increase.

The trust has a solid BBB+ credit rating and currently has a very healthy interest coverage ratio and Net debt to adjusted EBITDA ratio. Like many real estate businesses, Essex Property Trust uses a substantial but fair amount of leverage and maintains a relatively safe balance sheet. Its weighted average interest rate is quite low, reflecting the trust’s strong credit metrics.

Essex Property Trust is a high-quality apartment REIT that has raised its dividend for 30 consecutive years from the time it first became a publicly traded trust. ESS stock currently yields 3.6%.

Amcor plc (AMCR)

Amcor plc is one of the world's most prominent designers and manufacturers of packaging for food, pharmaceutical, medical, and other consumer products. The company emphasizes making responsible packaging that is lightweight, recyclable, and reusable.

Amcor reported its third quarter results for Fiscal Year (FY) 2024 on April 30th, 2024. The company's fiscal year ends in June. Amcor's fiscal quarter ending March 2024 demonstrated resilience despite market challenges, with notable increases in key financial metrics. GAAP diluted EPS reached 12.9 cents, with GAAP net income hitting $187 million. Adjusted EBIT rose by 3% to $397 million on a comparable constant currency basis, while adjusted EPS saw a 1% increase to 17.8 cents.

The outlook for Adjusted EPS for fiscal 2024 was raised to 68.5-71 cents per share, with Adjusted Free Cash Flow expected to range from $850-950 million. The company's improved financial performance in the third quarter was attributed to robust underlying business growth and enhanced earnings leverage. Despite a decline in overall volumes compared to the previous year, Amcor exceeded expectations, with sequential volume improvement observed across various categories and regions.

Looking ahead, Amcor anticipates sustained growth, with Adjusted EPS for fiscal 2024 projected to range from 68.5 to 71 cents per share and adjusted free cash flow estimated at approximately $850 million to $950 million. The company plans to allocate around $70 million toward share repurchases as part of its ongoing program.

AMCR stock currently yields 4.9%.

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