10 Best DRIP Stocks To Own Now

3. Johnson & Johnson (NYSE:JNJ)

Number of Hedge Fund Holders: 98

Johnson & Johnson (NYSE:JNJ) is an American multinational pharmaceutical company, based in New Jersey. The company specializes in a wide range of biotech and medical products and offers related services to consumers. It remains a dominant force across all major healthcare sectors, maintaining a strong competitive edge through robust cash flow, a growing research pipeline, and diverse revenue streams.

In its Q4 2024 earnings report, Johnson & Johnson (NYSE:JNJ) posted $22.5 billion in revenue, marking a 5.2% year-over-year increase. As a leader in healthcare, it continues to advance treatment options for conditions with significant unmet needs, including multiple myeloma, lung cancer, inflammatory bowel disease, and heart failure. The MedTech segment saw a 6.2% increase in global operational sales, with acquisitions and divestitures contributing 1.5% to the growth. The Cardiovascular division benefited from strong demand for electrophysiology products and Abiomed, while the General Surgery segment grew due to increased sales of wound closure products.

Johnson & Johnson (NYSE:JNJ) is reinforcing its commitment to innovation and growth through strategic acquisitions. The company has announced plans to invest more than $14 billion in acquiring Intra-Cellular Therapies, strengthening its focus on treatments for central nervous system disorders. The deal will be financed using a mix of cash reserves and debt, with completion expected later this year. This represents the largest biotech acquisition in over a year, signaling a renewed wave of healthcare mergers and acquisitions after a slower 2024 when major pharmaceutical firms prioritized integrating their previous post-pandemic acquisitions.

Johnson & Johnson (NYSE:JNJ) is one of the best DRIP stocks on our list with 62 consecutive years of dividend growth under its belt. The company’s quarterly dividend comes in at $1.24 per share for a dividend yield of 3.06%, as of February 23.