Is Johnson & Johnson's Dividend Unbeatable?

Johnson & Johnson sports a solid dividend, but is it the right pick for your portfolio?

Apr 16, 2014 at 6:30PM

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.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't 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.

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