Dobermans of the Dow: 10 Stocks to Consider

8. Johnson & Johnson (NYSE:JNJ)

Free Cash Flow Yield: 0.04

Number of Hedge Fund Holders: 98

An American pharmaceutical company, Johnson & Johnson (NYSE:JNJ) ranks eighth on our list of the Dobermans of the Dow. In the past 12 months, the stock has surged by over 4% and has returned over 16% since the start of 2025. Over the past 15 years, the company has strengthened its market position by shifting its focus toward brand-name drug development. Since spinning off its consumer health business, Kenvue, in 2023, its innovative medicine segment now generates nearly two-thirds of total revenue. While brand-name drugs have a limited period of market exclusivity, their strong pricing power and high margins remain key profitability drivers.

In the fourth quarter of 2024, Johnson & Johnson (NYSE:JNJ) reported revenue of $22.5 billion, marking a 5.2% increase from the previous year. As a major player in the healthcare industry, the company continues to focus on addressing critical medical needs, including multiple myeloma, lung cancer, inflammatory bowel disease, and heart failure.

Johnson & Johnson’s (NYSE:JNJ) MedTech division recorded 6.2% operational sales growth worldwide, with acquisitions and divestitures contributing 1.5% to this increase. The Cardiovascular segment benefited from strong demand for electrophysiology products and Abiomed, while higher sales of wound closure products supported growth in the General Surgery division.

Johnson & Johnson (NYSE:JNJ) offers a quarterly dividend of $1.24 per share for a dividend yield of 2.96%, as of March 10. The company has one of the strongest dividend policies in the market as it has raised its payouts for 62 consecutive years.