Top 3 Dividend Aristocrats to Beat Inflation this July

On Tuesday, the Bureau of Labor Statistics (BLS) reported an annual core inflation, excluding food and energy, at 2.9% for June. Although this is up 0.1% from May, it is lower than the 3.3% core inflation in June 2024. Nonetheless, the Fed’s preferred inflation metric is not only above the 2% target but remains stubbornly high. The simplest way to offset the corrosive inflationary effect is to invest in dividend stocks. But not just any stocks. Dividend aristocrats, having increased dividends for at least 25 years consecutively, have a proven track record of growing dividends while also not overextending. Let’s examine three dividend aristocrats above 5% dividend yield.

Amcor PLC (NYSE: AMCR) – 5.38% dividend yield at 12.75 cents per share quarterly

According to the University of Michigan’s Center for Sustainable Systems, the U.S. urban population increased from 64% in 1950 to 83% in 2022, with a projection of 89% by 2050. Higher urbanization translates to denser commercialization, which then translates to greater demand for packaged goods.

Swiss-based Amcor has perfected global packaging since the company’s founding in 1860. Amcor covers packaging not only for food and beverage, but also for personal care, pharmaceuticals, home, pet care and technical applications.

In April, the company completed an all-stock merger with Berry Global, with an expected annual cash flow of over $3 billion by fiscal 2028. Amcor’s net sales in Q1 2025 increased by 1% to $2.6 billion compared to the year-ago quarter, while net income increased to $197 million vs $187 million in Q1 2024.

For fiscal 2025, the company projects a free cash flow of $0.9-$1 billion and adjusted earnings per share (EPS) of $72 – $74. At the moment, no analysts recommend selling AMCR stock, 7 are holding, and 9 are bullish. Against the current price of $9.58, the average AMCR price target is $11.23 while the bottom price target is also slightly below the present price level at $9.51.

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Universal Corporation (NYSE: UVV) – 5.99% dividend yield at 82 cents per share quarterly

Universal is a global supplier of tobacco, founded in 1918, serving as a link between sourced farmers and manufacturers for tobacco products. Although global cigarette production has declined, Universal has increased its operating income steadily since fiscal 2020, from $140 million to $240 million in fiscal 2025.

Moreover, the company diversified its plant portfolio to enter the food and beverage market. Given the complexity of establishing relations with farmers in a cost-effective manner, Universal’s niche has a high barrier to entry.

Although the company’s net income went down in Q1 to $95 million from $120 million in the year ago quarter, both its operating income and revenue increased.

Universal’s operating margin was highest in 2024 at 8.1% with only a marginal decline to 7.9% in 2025. Over the last three months, UVV stock is up 6%, presently priced at $54.77 against a 52-week peak of $67.33. The average UVV price target is $59 per share.

Realty Income Corp. (NYSE: O) – 5.71% dividend yield at 26 cents per share quarterly

As a publicly traded real estate investment trust (REIT), Realty must distribute at least 90% of taxable income to shareholders annually via dividend payouts. In the latest June investor presentation Realty broke down its exposure across sectors and countries with a notable uptick in data center exposure in 2023.

For Q1 2025, the company reported total enterprise value worth $80 billion with $5.05 billion in annualized base rent across over 15,000 commercial real estate properties. Since its NASDAQ listing in 1994, Realty delivered 13.6% compound annual return, with 4.3% compound annual dividend growth rate.

For fiscal 2025, Realty expects to have over 98% occupancy and AFFO (adjusted funds from operations) per share between $4.22 and $4.28. The company’s EPS is projected between $1.40 and $1.46. Against the current price of $56.45, the average O price target is $61.34 per share. Likewise, the bottom price target is above the present price level, at $58 per share.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.