S&P 500 Dividend Aristocrats List: Sorted By Hedge Fund Sentiment

4. Johnson & Johnson (NYSE:JNJ)

Number of Hedge Fund Holders: 80

Johnson & Johnson (NYSE:JNJ) ranks fourth on our list of the best dividend aristocrat stocks. The American pharmaceutical industry company specializes in a wide range of biotech and medical products and services. A recent report by S&P Global highlighted Johnson & Johnson (NYSE:JNJ) as one of the most resilient pharmaceutical companies, noting its low business and financial risks compared to other major drugmakers. The report praises the company for its substantial scale and its portfolio of blockbuster drugs. It emphasizes the importance of competitive advantages derived from sustainable innovations, which can lead to premium pricing and product differentiation. This assessment is based on factors such as the company’s investment in R&D, its R&D track record, the strength of its pipeline and marketing, and its ability to maintain long-term revenue growth and strong margins, even as products lose exclusivity.

In the second quarter of 2024, Johnson & Johnson (NYSE:JNJ) reported revenue of $22.4 billion, which showed a 4.3% growth from the same period last year. In the first half of 2024, medical technology sales increased by 3.3%, or 5.4% when adjusted for constant currency rates. The company’s management has recently lowered its earnings forecast for 2024, reflecting the impact of recent acquisitions, including Shockwave. Shockwave is the sole producer of intravenous lithotripsy devices that are approved for softening calcified blood vessels.

Johnson & Johnson (NYSE:JNJ) is a reliable investment for income investors. The company offers a quarterly dividend of $1.24 per share, having raised it by 4% in April this year. Through this increase, the company stretched its dividend growth streak to 62 years. The stock supports a dividend yield of 3.11%, as of August 19.

As of the close of the June quarter of 2024, 80 hedge funds in Insider Monkey’s database held stakes in Johnson & Johnson (NYSE:JNJ), which remained unchanged from the previous quarter. These stakes have a total value of nearly $4.7 billion. Ken Fisher’s Fisher Asset Management held the largest stake in the company in Q2.