#5: Johnson & Johnson
Current Dividend Yield: 3.6%
Performance So Far in 2012: -2%
Johnson & Johnson (NYSE:JNJ) has raised dividends for 49 years in a row — almost as impressive as the aforementioned P&G. Over the past decade, the company has managed to boost distributions by over 12% per year — all while delivering a headline yield of about 3.6% right now.
The biggest dividend driver isn’t prescription drug offerings like vaccines, but consumer health operations thanks to products like Band-Aid and Tylenol.
Revenue admittedly has been a bit stagnant at J&J during the past few years, and quality control issues have held back the stock. However, earnings per share continue to improve and a new leader in former Army Ranger Alex Gorsky might help heal J&J’s image.
And if you believe projections, Johnson & Johnson could see a stunning 48% jump in earnings per share for fiscal 2012 compared with fiscal 2011. Throw in the fact that unlike other big pharma stocks, Johnson & Johnson is a diversified company with plenty of consumer offerings that will avoid painful patent expirations, and you have another plus.