15 Best Stocks For Dividends

3. Johnson & Johnson (NYSE:JNJ)

Number of Hedge Fund Holders: 80

An American pharmaceutical and health consumer company, Johnson & Johnson (NYSE:JNJ) ranks third on our list of the best stocks for dividends. The company pays a quarterly dividend of $1.24 per share, growing it by 4% in April this year. Through this increase, the company stretched its dividend growth streak to 62 years. As of July 15, the stock has a dividend yield of 3.32%.

Under pressure from numerous talc lawsuits, Johnson & Johnson (NYSE:JNJ) is shifting its focus to the next phase of its business, which investors hope will lead to greater growth than in previous years. Last year, the company spun off its consumer health division. Now, with only two main segments—medical devices and innovative medicines—it may be well-positioned to increase its growth rate. In the first quarter of 2024, the company reported revenue of $21.3 billion. Although this represents a modest YoY growth of 2.3%, it is still a promising outset. The company’s innovative medicine segment remained the real winner, accounting for $13.5 billion of its total revenue and showing a 1.1% growth from the same period last year.

Johnson & Johnson (NYSE:JNJ) expects a gradual improvement in its growth rate. Management forecasts an annual operational growth rate of 5% to 7% from 2025 to 2030. Furthermore, the company aims to have more than 10 assets capable of achieving at least $5 billion in peak annual sales.

As of the end of the March quarter of 2024, 80 hedge funds tracked by Insider Monkey held stakes in Johnson & Johnson (NYSE:JNJ), down slightly from 81 in the previous quarter. The consolidated value of these stakes is over $4.2 billion.