Dividend stocks aren't all created equal. Some decrease their payouts, or suspend them altogether, when they face headwinds. Others have much stronger businesses and continue to raise their dividends even as they face obstacles. Income seekers want to stay away from the former and invest in the latter. One imperfect way to determine which is which is to look at their track records.
Of course, the past doesn't guarantee anything, but companies with a long history of raising their dividends often have what it takes to continue down that path. Let's consider two dividend stocks that have impeccable credentials in that department and are still worth investing in today: Medtronic (MDT +3.06%) and Johnson & Johnson (JNJ +1.28%).
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1. Medtronic
Medtronic, a leading medical device company, may face headwinds due to the impact of tariffs on its financial results. However, the stock has performed well this year. Its most recent financial results came in ahead of analyst estimates, and the company even increased its earnings guidance for its ongoing fiscal year 2026, which started on April 26.
Although Medtronic has encountered some issues in recent years, the healthcare giant has taken steps to rectify the situation. One of its focuses is improving profitability. Medtronic has explored spinning out some of its divisions before. It finally settled on diabetes care, its only consumer-facing business, and one that generates lower margins than the rest of its operations. The initiative should help the company boost the bottom line somewhat.
NYSE: MDT
Key Data Points
Meanwhile, Medtronic's underlying business remains strong. The company is one of the world's largest medical device manufacturers, with operations spanning multiple therapeutic areas. It continually develops and markets new products, resulting in consistent revenue and earnings growth.
One important approval it should soon earn is for its robotic-assisted surgery (RAS) device, the Hugo system; that should have a meaningful impact on its financial results, given the significant white space available in surgical robotics. Furthermore, the sustained higher demand for medical procedures should be a powerful tailwind for the company, as many of its product sales are tied to procedure volume.
Medtronic has increased its dividends for 48 consecutive years, a streak that points to a company capable of weathering any storm. The stock's current forward yield of 3.1% looks attractive compared to the S&P 500's average of 1.3%. This is a top dividend stock investors can double down on today.
2. Johnson & Johnson
Johnson & Johnson is also facing issues, including tariff-related ones, and generic competition for its immunology medicine Stelara. Still, the pharmaceutical giant is performing well. Its second-quarter results were strong, and it also increased its guidance for the fiscal year 2025.
J&J's pharmaceutical segment is well-diversified, with products in immunology, oncology, neuroscience, infectious diseases, and more. Thanks to robust research and development (R&D) spending and significant experience in the field, the company consistently launches new products that help mitigate losses from those that fall out of patent protection. It's done the same in recent years, which is why, despite Stelara's recent challenges, the top line continues to move in the right direction. That's a great sign for investors.
Johnson & Johnson's medical device segment also adds to its diversification. The company is looking to dip its toes in the RAS market with its Ottava system, which is still undergoing clinical trials in the U.S. The Ottava could be a critical addition to the company's arsenal.
NYSE: JNJ
Key Data Points
It's true that J&J has recently faced legal and regulatory challenges, including lawsuits and government-imposed price negotiations. While these are worth monitoring, it's important to remember that Johnson & Johnson is a Dividend King, with 62 consecutive years of dividend increases. The company has been through a great many things over that time frame, including the establishment of Medicare and Medicaid, which completely transformed the U.S. healthcare sector.
Johnson & Johnson has survived -- and thrived -- over the long run despite similar challenges in the past, and the company remains more than capable of fulfilling its financial obligations. That's why it has a higher credit rating than the U.S. government. Despite recent headwinds, Johnson & Johnson remains a top income stock worth investing in for the long term.
