15 Stocks to Invest in with Steady Dividends

9. Johnson & Johnson (NYSE:JNJ)

Upside Potential as of January 20: 14.93%

Johnson & Johnson (NYSE:JNJ) is a New Jersey-based pharmaceutical company that specializes in a wide range of biotech and medical products and offers related services to consumers. Analysts believe the stock is a worthwhile investment due to its future earnings potential. After divesting its consumer health division in 2023, the company has shifted its focus entirely to its pharmaceuticals and medtech sectors, which offer significant growth opportunities. The pharmaceuticals segment, known as innovative medicine, features 11 major brands experiencing double-digit growth. In the medtech area, the company is moving into high-growth markets, bolstered by the acquisitions of Shockwave and Abiomed. These strategic moves have positioned J&J as a leader in four key cardiovascular intervention markets. Since the start of 2025, the stock has surged by nearly 3%.

In addition, Johnson & Johnson (NYSE:JNJ) is attracting attention for its ongoing innovation and recent acquisitions. The company recently announced plans to invest over $14 billion in acquiring Intra-Cellular Therapies to strengthen its focus on central nervous system disorders. The acquisition will be financed through a mix of cash reserves and debt, with the deal expected to close later this year. This move marks the largest biotech acquisition in over a year, signaling a resurgence in healthcare mergers and acquisitions after a 2024 slowdown, as major pharmaceutical companies took time to integrate their previous post-pandemic purchases.

Johnson & Johnson (NYSE:JNJ) is a strong dividend payer as the company has raised its payouts for 62 years. The company pays a quarterly dividend of $1.24 per share and has a dividend yield of 3.35%, as of January 20. With an upside potential of nearly 15%, JNJ is one of the best stocks with steady dividends.

As of the close of Q3 2024, 81 hedge funds tracked by Insider Monkey reported having stakes in Johnson & Johnson (NYSE:JNJ), up from 80 in the previous quarter. These stakes are collectively valued at over $5.4 billion.