25 Best Dividend Aristocrats to Buy According to Analysts

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8. Johnson & Johnson (NYSE:JNJ)

Upside Potential as of May 26: 19.2%

Johnson & Johnson (NYSE:JNJ) has been facing a lot of downward pressure lately, mainly due to the talc lawsuits that involves tens of thousands of people who alleged that the company’s talc products, including baby powder, contain asbestos and can cause ovarian cancer. At the beginning of May, the pharmaceutical giant said that it had launched a $6.5 billion settlement proposal. The company hopes to reach a consensus through a three-month voting period.

Nevertheless, Johnson & Johnson (NYSE:JNJ) remains one of the best dividend stocks to hold, sporting a yield of 3.37% based on the quarterly dividend of $1.24 per share. The company is also considered a dividend king, having raised its dividend for the past 62 years. Johnson & Johnson (NYSE:JNJ) has also been steadily delivering results above the consensus estimates and in the latest earnings call it has slightly increased its revenue and EPS guidance for the full fiscal 2024. We should also mention that the stock is currently trading at a trailing twelve-month P/E ratio of 21.8, which appears relatively undervalued, compared to its peers.

At the end of the first quarter, 80 hedge funds tracked by Insider Monkey held stakes in Johnson & Johnson (NYSE:JNJ) with a total value of $4.2 billion, down from 81 in the previous quarter.

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