5 Dividend Aristocrats Hedge Funds Love

1. Johnson & Johnson (NYSE:JNJ)

Number of Hedge Fund Holders: 83

Johnson & Johnson (NYSE:JNJ) has increased its dividend payout for the last 59 years in a row, and ranks first on our list of dividend aristocrats that hedge funds love. 83 were bullish on Johnson & Johnson (NYSE:JNJ) shares in the fourth quarter, with aggregate stakes worth $7.38 billion. Fundsmith LLP was the largest shareholder of the firm in the fourth quarter, with a stake comprising of 7.21 million shares worth $1.23 billion.

The New Jersey-based firm offers healthcare and pharmaceutical products. On January 4, Johnson & Johnson (NYSE:JNJ) declared a $1.06 per share quarterly dividend, which was in-line with previous. As of March 16, it provides a dividend yield of 2.41%.

In early March,  BofA analyst Geoff Meacham reinstated coverage of Johnson & Johnson (NYSE:JNJ) with a ‘Neutral’ rating and price target of $185, noting a positive outlook on the firm’s near-term growth prospects, given its ‘safe haven’ status within the current macro and geopolitical environment. Johnson & Johnson (NYSE:JNJ) reported an EPS of $2.13 in the fourth quarter, beating analysts’ forecasts by $0.01. Quarterly revenue stood at $24.80 billion, which was an increase of 10.36% as compared to the year-ago quarter, but fell below consensus estimates by $485.39 million.

Investment firm Distillate Capital talked about Johnson & Johnson (NYSE:JNJ) in its Q2 2021 investor letter. The fund said:

“The largest additions in the rebalance, Johnson & Johnson was around 50 and 40 basis points incrementally. J&J underperformed in the quarter while its normalized free cash flows held steady and so its position size was topped off to match the stable cash flows.”

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