Three Smart Money Dividend Companies: Johnson & Johnson (JNJ), Archer Daniels Midland Company (ADM), Chesapeake Energy Corporation (CHK)

The third company on the list is Johnson & Johnson (NYSE:JNJ), which is a perennial dividend favorite. I haven’t looked at JNJ in a few months, so I will take a look and see if I feel the same as Prem Watsa, whose portfolio lists JNJ as his number 2 holding.

The company is currently trading at approximately $78 and yields 3.1%. It has raised dividends every year for 50 years, its 5-year DGR is 8.0%, and it has returned 24.9% over the past twelve months.

The analysts’ 5-year annual growth estimate is a 6.4%, the company’s PE is 20.3 and its dividend-payout ratio is 63%.

Johnson & Johnson (NYSE:JNJ) scores a 16 on my rating scale, again, a little too low for my portfolio. It’s a solid dividend payer, just not quite good enough.

So I don’t agree with the smart money, apparently. Only time will tell if I am wrong. But so far, I have been very pleased with my results, so I am not doubting my methodology yet.

The article Three Smart Money Dividend Companies originally appeared on Fool.com and is written by Karin Hernandez.

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