5 Best Dividend Paying Stocks to Buy Now

1. Johnson & Johnson (NYSE: JNJ)

Number of Hedge Fund Holders: 81
Dividend Yield as of August 2: 34.2% 

Topping the list of 10 best dividend-paying stocks to buy now is American multinational company Johnson & Johnson (NYSE: JNJ). The New Jersey-based consumer goods manufacturer engages in the production of medical devices, pharmaceutical, and consumer-related goods. Johnson & Johnson (NYSE: JNJ) is one of the best dividend-paying stocks to buy now that started paying dividends in 1972. Johnson & Johnson (NYSE: JNJ) pays an annual dividend of $4.24 per share and yields at 2.46%. 

In May, Morgan Stanley analyst David Risinger assumed coverage on Johnson & Johnson (NYSE: JNJ) with an Overweight rating and price target of $187 per share. The analyst believes that pharmaceuticals momentum will remain strong and the three segments of JNJ will deliver strong performance.

The company has a market cap of $452 billion. In the second quarter of 2021, Johnson & Johnson (NYSE: JNJ) reported an adjusted EPS of $2.48, beating estimates by $0.21. The company’s second-quarter revenue was $23.31 billion, beating consensus estimates of $22.19 billion.

At the end of the first quarter of 2021, 81 hedge funds in the database of Insider Monkey held stakes worth $6.91 billion in Johnson & Johnson (NYSE: JNJ).

Amana Mutual Funds Trust mentioned Johnson & Johnson (NYSE: JNJ) in its Q1 2021 investor letter. Here is what the fund said:

“Even so, Lilly stood out as one, among a handful, of companies that registered a positive return for the first quarter. In January, Lilly reported excellent fourth-quarter results, with revenue growing at a faster clip than over the first three quarters of the year. Lilly is also financially strong with debt equivalent to only two times EBITDA3 and 12% of market capitalization. Johnson & Johnson, while trailing Lilly, shares many of the same characteristics and also outperformed.”

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