Major health-care stocks out of big pharma and medical devices offer great dividends, but few offer the strength and reliability of sector colossus Johnson & Johnson (NYSE:JNJ). While it may not boast the highest yield in health care at only 2.7%, the firm's inclusion among the S&P 500's Dividend Aristocrats -- companies that have raised their dividend in each of at least the past 25 years -- along with its diversity across consumer, medical device, and pharmaceutical units makes Johnson & Johnson's dividend a contender among the best in the market in the long term.
Yet that's not all this powerhouse stock has going for it. J&J's outperformed the S&P 500 year to date, with its stock gaining 9% in 2014 despite the market's sluggishness. The company's just off of a strong first-quarter earnings report that posted an 8% year-over-year growth in profit, and its pharmaceutical division has ignited recently, with sales in the unit up 11% for the quarter.
With the security of its diversity and the recent growth in drug sales, can investors find a better dividend in health care than Johnson & Johnson? In the video below, Motley Fool contributor Dan Carroll takes you through what you need to know about this powerhouse dividend and how J&J's success can help your portfolio thrive.
Is Johnson & Johnson among the best dividend stocks for the next decade?
The smartest investors know that dividend stocks like Johnson & Johnson simply crush their non-dividend-paying counterparts over the long term. That's beyond dispute. They also know that a well-constructed dividend portfolio creates wealth steadily, while still allowing you to sleep like a baby. Knowing how valuable such a portfolio might be, our top analysts put together a report on a group of high-yielding stocks that should be in any income investor's portfolio. To see our free report on these stocks, just click here now.
Dan Carroll has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Johnson & Johnson. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.