Is Johnson & Johnson's Dividend Unbeatable?

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

Dan Carroll
Dan Carroll
Apr 16, 2014 at 6:30PM
Health Care

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.