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.
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.
More from The Motley Fool
3 Dividend Stocks That Pay Out Over $8 Billion a Year
Can these huge companies keep the big dividend bucks flowing?
Johnson & Johnson Aims to Start 2018 Healthy
Investors have high hopes for the healthcare conglomerate.
Is Johnson & Johnson a Buy?
Is now a good time to invest in the healthcare titan's stock?