5 Best DRIP Stocks To Buy in 2022

1. Johnson & Johnson (NYSE:JNJ)

Number of Hedge Fund Holders: 83

Dividend Yield as of April 25: 2.49%

Johnson & Johnson (NYSE:JNJ) is a favorite DRIP stock pick of legendary value investors. The company offers a commission-free dividend reinvestment plan to registered shareholders which allows for the reinvestment of all or a portion of dividends into additional shares of common stock.

On April 19, 2022, Johnson & Johnson (NYSE:JNJ) reported earnings for the fiscal first quarter of 2022 in which the company beat EPS estimates by $0.10. The company reported earnings per share of $2.67 and generated revenues of $23.43 billion, up 4.95% year over year from $22.32 billion. As of April 25, the stock’s trailing-twelve-month returns are up 12.55% and the company boasts 59 years of consistent dividend increases, with a 5-year dividend growth rate of 5.79%.

On April 19, Johnson & Johnson (NYSE:JNJ) announced that its board of directors has authorized a dividend increment of 6.6%, bringing its quarterly common stock cash dividend to $1.13, from $1.06. The dividend is payable on June 7, to investors of record at the close of business on May 23. Moreover, this April, Credit Suisse analyst Matt Miksic raised his price target on Johnson & Johnson (NYSE:JNJ) to $205 from $200 and reiterated an Outperform rating on the shares.

As of December 31, Terry Smith’s Fundsmith LLP remains the most bullish on Johnson & Johnson (NYSE:JNJ), owning more than 7.2 million shares of the stock. This amounts to a stake value of $1.23 billion, which covers 3.01% of Terry Smith’s investment portfolio.

See also 10 Best Oil Stocks to Buy Amid Post-COVID Demand Boom and Price Volatility and 10 Best Dividend Stocks for Long Term.

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