Dividend stocks are not all the same. Some will readily decrease or suspend their payouts at the first sign of trouble, while others will continue increasing them even during market downturns or economic recessions.
Dividend investors prefer those that are in the latter category. Let's consider two stocks along those lines that are worth buying: Johnson & Johnson (JNJ 0.39%) and Zoetis (ZTS 3.78%). These two healthcare companies are excellent picks for income-oriented investors.
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1. Johnson & Johnson
Johnson & Johnson has many qualities that long-term income seekers seek. The company's business, albeit not particularly exciting, is consistent and resilient. Johnson & Johnson is a leading pharmaceutical company with a vast portfolio of approved medicines, as well as a medical device leader operating across several therapeutic areas.
Revenue and earnings typically grow at a decent clip. That's the case even when it encounters problems such as patent cliffs and government-led drug price negotiations -- issues it is currently dealing with, but it expects its annual reported sales to grow this year and top $100 billion for the first time. Johnson & Johnson also has a rock-solid balance sheet, evidenced by its higher credit rating than the U.S. government's.
NYSE: JNJ
Key Data Points
Further, Johnson & Johnson is an innovative company. It routinely launches new products, both in its biopharma and medtech divisions, that help it counter stiff competition, whether biosimilar or otherwise.
Johnson & Johnson is now awaiting approval for its robotic-assisted surgery system, the Ottava, that could be an important growth driver over the long run. And the company's pharmaceutical pipeline features several dozen ongoing clinical trials that will help it replenish its portfolio and earn important label expansions.That's how the company has performed well over the long run.
Finally, Johnson & Johnson is a Dividend King, a company with at least 50 consecutive annual dividend hikes. That's what helps make it an outstanding income stock that dividend investors shouldn't think twice about.
2. Zoetis
Zoetis is a leading animal health company. It hit some headwinds last year, as two of its growth drivers, Librela and Solensia, which treat osteoarthritis (OA) pain in dogs and cats, respectively, raised safety concerns; this issue particularly affected Librela.
The good news is that the company has earned approval for newer products for OA pain in dogs and cats, Lenivia and Portela.These two also have the advantage of being longer-acting medicines (administered monthly rather than once every three months) that would likely have stolen market share from their predecessors even without safety problems.
NYSE: ZTS
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The company has maintained a solid position in its industry thanks to its routinely launching newer and better products. Its growth portfolio also features Apoquel, a medicine for allergic itch in dogs that was a breakthrough in its niche. Although it was approved more than a decade ago, Zoetis still sees room for growth in Apoquel, as a large population of dogs remains untreated worldwide.
Zoetis may face challenges due to competition, safety issues, or patent cliffs, but the company's deep portfolio of medicines and innovative approach should help it capitalize on an important trend: Younger generations are increasingly choosing owning pets over having children.
Then there is the company's dividend, which it has increased by an impressive 458% over the past decade. Zoetis is another terrific healthcare dividend stock to buy in 2026 and hold for a while.
