We recently published a list of the 10 Best Long-Term Dividend Stocks to Buy According to Billionaires. In this article, we are going to take a look at where Johnson & Johnson (NYSE:JNJ) stands against other best long-term dividend stocks.
Dividend stocks are increasingly popular with both every day and billionaire investors. A CNBC report noted that for many, dividend stocks are always a solid choice, offering a steady income from corporate cash flow, which provides stability despite fluctuations in stock prices. With both the stock and bond markets experiencing significant volatility, these stocks are becoming even more attractive, serving as a balanced option between growth and yield for a broader range of investors.
The long-term appeal of dividend-paying stocks remains robust, especially for investors aiming to reduce risk while still pursuing growth. Ramona Persaud, portfolio manager of the Fidelity Equity-Income Fund and Fidelity Global Equity Income Fund, typically prefers high-quality companies that offer reliable dividends and are attractively priced. She highlighted that declining interest rates can benefit dividend stocks, as their yields become more appealing compared to bonds. Additionally, Persaud mentioned that lower rates could help drive broader market gains, unlike the recent performance, which was mainly driven by a few large growth stocks.
Her investment strategy focuses on companies with strong balance sheets, consistent cash flows, and significant return potential. She also stresses the importance of valuation—seeking stocks that are reasonably priced compared to their peers and historical averages—while targeting dividend yields that stand out in the current market. This blend of quality, value, and income, she believes, has contributed to the fund’s strong performance in both rising and declining markets.
Dividend stocks are gaining popularity once more in the current market, following two years of losses amid the dominance of high-performing tech stocks. The Dividend Aristocrat Index, which tracks the performance of companies with at least 25 consecutive years of dividend growth, is down by a little over 2% since the start of 2025, compared with a nearly 6% decline in the broader market. This trend indicates that dividends are gaining traction, with more companies introducing dividend policies and existing dividend payers gradually increasing their payouts to attract investors. An S&P Global report projects that 408 companies in the broader market will pay dividends in 2025. Of these, nearly 350 are expected to raise their dividends over the next year, contributing to an estimated 6% growth in total dividends compared to the previous year. In the overall US market, aggregate dividend growth is forecasted to be 4.6% in 2025. Since S&P companies account for about 85% of all US dividend payments, the S&P index serves as a reliable indicator of broader dividend trends.
Dividend stocks are also a key component of many billionaire investors’ portfolios. For instance, Warren Buffett has been earning billions annually from dividend stocks, setting a strong example for other investors, as his strategies are highly regarded. In fact, nearly 90% of the companies in his Q4 portfolio pay dividends, and many of them are also known for growing their dividends over time.
A smiling baby with an array of baby care products in the foreground.
Our Methodology
To compile this list, we screened for dividend stocks that have strong financials and solid dividend policies. From that group, we picked 10 companies that were most popular among billionaire investors, as per Insider Monkey’s billionaire database of Q4 2024. The stocks are ranked according to the number of billionaires having stakes in them.
At Insider Monkey, we are obsessed with hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Johnson & Johnson (NYSE:JNJ)
Number of Billionaire Holders: 18
Johnson & Johnson (NYSE:JNJ) is an American multinational healthcare company that specializes in pharmaceuticals, biotechnology, and medical technologies. The company recently announced its Q1 2025 earnings, reporting revenue of $21.9 billion, a 2.4% increase compared to the same quarter last year. Revenue also surpassed analysts’ expectations by $315.6 million. Net earnings came in at $11 billion, representing a 238% year-over-year surge.
Throughout the quarter, Johnson & Johnson (NYSE:JNJ) further cemented its standing as an innovation leader by advancing several projects in its development pipeline. Highlights included progress with TREMFYA for inflammatory bowel disease, the combination of RYBREVANT and LAZCLUZE for non-small-cell lung cancer, and developments with OTTAVA, its robotic soft tissue surgery system. The company also expanded its neuroscience portfolio with the acquisition of Intra-Cellular Therapies.
Johnson & Johnson (NYSE:JNJ) continued to show financial strength, posting free cash flow of $3.4 billion for the quarter, up from $2.8 billion a year earlier. On April 15, it announced a 4.8% increase in its quarterly dividend to $1.30 per share, marking its 63rd consecutive year of dividend growth. With a dividend yield of 3.36% as of April 27, JNJ is one of the best dividend stocks according to billionaires.
At the end of Q4 2024, 18 billionaires held positions in Johnson & Johnson (NYSE:JNJ), worth over $2.9 billion collectively. With over 8.1 million shares in JNJ, Ken Fisher’s Fisher Asset Management was the company’s leading stakeholder in Q4.
Overall, JNJ ranks 5th on our list of the best long-term dividend stocks according to billionaires. While we acknowledge the potential of JNJ as an investment, our conviction lies in the belief that some deeply undervalued dividend stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a deeply undervalued dividend stock that is more promising than JNJ but that trades at 10 times its earnings and grows its earnings at double digit rates annually, check out our report about the dirt cheap dividend stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
