10 Best Dividend Paying Stocks To Buy According to Quant Hedge Fund AQR

2. Johnson & Johnson (NYSE:JNJ)

AQR Capital’s Stake Value: $489,176,124

Dividend Yield as of August 22: 3.08%

Johnson & Johnson (NYSE:JNJ) is an American pharmaceutical industry company that specializes in a wide range of biotech and medical products and also offers related services to consumers. The company has consistently grown its portfolio through various acquisitions. Recently, it announced plans to acquire the medical device company V-Wave for an initial payment of $600 million. The deal also includes potential milestone payments of up to $1.1 billion, contingent on regulatory and commercial achievements, and is expected to be finalized by the end of 2024. These acquisitions have consistently bolstered the company’s resilience. In the past five years, it has surged by nearly 27%.

Analysts have also recognized this resilience. A recent S&P Global report highlighted Johnson & Johnson (NYSE:JNJ) as one of the strongest pharmaceutical companies, citing its lower business and financial risks compared to other major drugmakers. The report commends the company for its significant scale and portfolio filled with blockbuster drugs, emphasizing the competitive advantages gained from sustainable innovations. These innovations enable premium pricing and product differentiation. The assessment considers factors like the company’s R&D investments, its strong R&D track record, the strength of its pipeline and marketing, and its ability to sustain long-term revenue growth and strong margins, even as products lose exclusivity.

During the second quarter of 2024, AQR Capital increased its position in Johnson & Johnson (NYSE:JNJ) by 39% and ended the quarter with over 3.3 million JNJ shares. These shares have a value of over $489 million, which made up 0.74% of the firm’s 13F portfolio.

Johnson & Johnson (NYSE:JNJ) is a Dividend King with 62 consecutive years of dividend growth under its belt. The company offers a quarterly dividend of $1.24 per share and has a dividend yield of 3.08%, as recorded on August 22. It is among the best dividend-paying stocks on our list.

At the end of June 2024, 80 hedge funds tracked by Insider Monkey were bullish on Johnson & Johnson (NYSE:JNJ), owning stakes worth nearly $4.7 billion in total.