12 Most Reliable Dividend Stocks To Buy According to Hedge Funds

6. Johnson & Johnson (NYSE:JNJ)

Number of Hedge Fund Holders: 81

Johnson & Johnson (NYSE:JNJ) is an American pharmaceutical company, based in New Jersey. The company specializes in a wide range of biotech and medical products and offers related services to consumers. In 2023, the company reorganized its operations by spinning off its Consumer Health division, enabling it to focus on high-margin, innovation-driven areas. The rebranded Pharmaceuticals division, now called Innovative Medicine, continues to perform well, driving significant revenue through blockbuster drugs like STELARA and DARZALEX. In addition, the company has consistently expanded its portfolio through various acquisitions, with its most recent purchase being the medical device company V-Wave. The initial payment for the deal was $600 million, with additional milestone payments potentially reaching up to $1.1 billion, depending on regulatory approvals and commercial success.

Johnson & Johnson (NYSE:JNJ) reported solid earnings for the third quarter of 2024, with revenues totaling $22.4 billion, a 5.25% increase from the same period last year. For the first nine months of the year, the company generated $14 billion in free cash flow, up from $11.9 billion in the prior year. The company has updated its 2024 guidance, including adjusted operational earnings per share (EPS), to reflect stronger performance and the impact of its recent V-Wave acquisition. It now expects adjusted operational sales to grow between 5.7% and 6.2%, with a midpoint of 6.0%.

Johnson & Johnson (NYSE:JNJ) is one of the strongest dividend payers in the market, having raised its payouts for 62 consecutive years. On January 2, the company declared a quarterly dividend of $1.24 per share, which was consistent with its previous dividend. The stock’s dividend yield on January 12 came in at 3.49%.

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 are worth over $5.4 billion in total. With over 7.5 million shares, Fisher Asset Management was the company’s leading stakeholder in Q3.