11 Best Dividend Paying Stocks to Buy According to Hedge Funds

8. Johnson & Johnson (NYSE:JNJ)

Number of Hedge Fund Holders: 98

Johnson & Johnson (NYSE:JNJ) is a New Jersey-based healthcare company that specializes in manufacturing, developing, and selling a wide range of healthcare products and also offers related services. The company’s core pharmaceutical business remains unaffected by current tariffs for now, but its latest attempt to resolve talc-related lawsuits through bankruptcy was rejected by a judge. The company now plans to defend itself through the tort system, as courts have ruled the lawsuits don’t pose financial distress.

While it would have been ideal to resolve its legal challenges, Johnson & Johnson (NYSE:JNJ) continues to demonstrate exceptional financial strength and operational stability. Its pharmaceutical and MedTech divisions remain robust, supported by consistent earnings and a strong pipeline that regularly delivers new product approvals. With over a century of innovation behind it, the company is expected to maintain its momentum. The stock has surged by over 5% since the start of 2025, outperforming the broader market.

In Q4 2024, Johnson & Johnson (NYSE:JNJ) reported $22.5 billion in revenue, reflecting a 5.2% year-over-year increase and surpassing expectations by $84.4 million. Operational growth reached 6.7%, while the MedTech segment posted a 6.2% rise in global operational sales, aided by acquisitions and divestitures.

Johnson & Johnson (NYSE:JNJ) also maintains a 62-year streak of dividend growth, which makes it one of the best dividend-paying stocks on our list. It currently pays a quarterly dividend of $1.24 per share and has a dividend yield of 3.27%, as of April 12.