10 Best Blue Chip Dividend Stocks To Buy

3. Johnson & Johnson (NYSE:JNJ)

Number of Hedge Fund Holders: 80

Johnson & Johnson (NYSE:JNJ) is an American pharmaceutical industry company that also specializes in healthcare consumer products. The company has been under significant pressure due to numerous talc lawsuits involving tens of thousands of people who claim that the company’s talc products, such as baby powder contain asbestos and can cause ovarian cancer. If the company can successfully resolve this issue, it would remove what is arguably the biggest risk and uncertainty facing the business today, potentially providing a boost to the stock. Since the start of 2024, the stock has declined by over 8%.

That said, Johnson & Johnson (NYSE:JNJ) is focusing on the next phase of its business, which investors hope will lead to greater growth than in previous years. Last year, the company spun off its consumer health division, and now, with only two main segments—medical devices and innovative medicines—it might be well-positioned to boost its growth rate. In the first quarter of 2024, the company posted revenue of over $21.3 billion, which showed a 2.3% growth from the same period last year. Its international sales saw a decline of 3.4% on a YoY basis. Its innovative medicine segment accounted for $13.5 billion of its total revenue. The company expects a modest increase in its growth rate. Management projects an annual operational growth rate of 5% to 7% from 2025 to 2030. In addition, the company expects to have over 10 assets capable of generating at least $5 billion in peak annual sales.

Johnson & Johnson (NYSE:JNJ) holds one of the longest dividend growth streaks in the market, spanning over 62 years. The company pays a quarterly dividend of $1.24 per share for a dividend yield of 3.39%, as of July 7.

At the end of March 2024, 80 hedge funds in Insider Monkey’s database reported having stakes in Johnson & Johnson (NYSE:JNJ), compared with 81 in the previous quarter. These stakes have a collective value of more than $4.2 billion. With over 6.6 million shares, Fisher Asset Management was the company’s leading stakeholder in Q1.