5 Blue Chip Dividend Stocks Hedge Funds are Buying

2. Johnson & Johnson (NYSE: JNJ)

Johnson & Johnson (NYSE: JNJ) is considered a defensive sock because of its 58 straight years of dividend growth. It is the second-best dividend stock hedge funds are buying.

It was in 82 hedge fund portfolios at the end of the September quarter. The dividends are fully backed by financial numbers. Its top and bottom-line growth are helping in raising dividends year over year. Its dividend payout ratio based on income stands around 50% while free cash flows are also offering a complete cover to dividend payments.

Johnson & Johnson is almost done with collecting data from the late stage trial of its COVID-19 single-dose vaccine candidate. The trial has 45,000 individuals enrolled and data from the process is expected by the end of January or early February.  If the study shows the vaccine is effective and safe, the company plans to submit an emergency use authorization application to the U.S. Food and Drug Administration in February.