10 Most Promising Dividend Stocks According to Hedge Funds

8. Johnson & Johnson (NYSE:JNJ)

Number of Hedge Fund Holders: 81

Johnson & Johnson (NYSE:JNJ) ranks eighth on our list of the most promising stocks according to hedge funds. The New Jersey-based multinational pharmaceutical company specializes in a wide range of biotech and medical products and offers related services to consumers.

Johnson & Johnson (NYSE:JNJ) is emphasizing its commitment to innovation and expansion through recent acquisitions. It has unveiled plans to invest over $14 billion in acquiring Intra-Cellular Therapies, reinforcing its focus on treatments for central nervous system disorders. The acquisition will be funded through a combination of cash reserves and debt, with the transaction expected to be finalized later this year. This marks the most significant biotech acquisition in over a year, indicating a resurgence in healthcare mergers and acquisitions following a slowdown in 2024 when major pharmaceutical companies concentrated on integrating their previous post-pandemic purchases.

Johnson & Johnson (NYSE:JNJ) reported its Q4 2024 earnings, recording $22.5 billion in revenue, reflecting a 5.2% increase from the same quarter the previous year. As a leading healthcare company, it continues to enhance treatment standards for conditions with significant unmet needs, such as multiple myeloma, lung cancer, inflammatory bowel disease, and heart failure. Its MedTech segment experienced a 6.2% rise in global operational sales, with net acquisitions and divestitures contributing 1.5% to this growth. The Cardiovascular division benefited from strong demand for electrophysiology products and Abiomed, while the General Surgery segment saw growth driven by wound closure products.

Johnson & Johnson’s (NYSE:JNJ) dividend growth makes it a reliable investment option for income investors. The company has been growing its payouts for 62 consecutive years and currently offers a quarterly dividend of $1.24 per share. The stock has a dividend yield of 3.26%, as of January 30.

Insider Monkey’s database of Q3 2024 indicated that 81 hedge funds held stakes in Johnson & Johnson (NYSE:JNJ), up from 80 in the previous quarter. These stakes have a collective worth of over $5.4 billion. With over 7.5 million shares, Fisher Asset Management was the company’s leading stakeholder in Q3.