13 Best Healthcare Dividend Stocks to Invest in

4. Johnson & Johnson (NYSE:JNJ)

Number of Hedge Fund Holders: 98

Johnson & Johnson (NYSE:JNJ) is one of the most prominent healthcare companies globally. The company, through its subsidiaries, develops, manufactures, and sells a diverse range of healthcare products, with a strong emphasis on human health and well-being. It operates through two main segments: Innovative Medicine and MedTech. Over the past 15 years, it has reinforced its market position by focusing on brand-name drug development. Following the 2023 spinoff of its consumer health business, Kenvue, the Innovative Medicine segment now accounts for nearly two-thirds of total revenue. While brand-name drugs have a limited window of market exclusivity, their strong pricing power and high-profit margins remain key drivers of profitability.

In the fourth quarter of 2024, Johnson & Johnson (NYSE:JNJ) reported $22.5 billion in revenue, reflecting a 5.2% year-over-year increase. As a leading healthcare company, it continues to prioritize addressing critical medical needs, including multiple myeloma, lung cancer, inflammatory bowel disease, and heart failure.

Johnson & Johnson (NYSE:JNJ) MedTech segment saw global operational sales grow by 6.2%, with acquisitions and divestitures contributing 1.5% to this increase. The Cardiovascular division benefited from strong demand for electrophysiology products and Abiomed, while the General Surgery segment experienced growth driven by higher sales of wound closure products.

Johnson & Johnson (NYSE:JNJ) holds one of the longest dividend growth track records in the market, spanning over 62 years. The company offers a quarterly dividend of $1.24 per share and has a dividend yield of 3.04%, as recorded on March 20.