#8: Johnson & Johnson
Current Dividend Yield: 3.4%
Performance So Far in 2012: +10%
Johnson & Johnson (NYSE:JNJ) just reported earnings that were better than expected, though profit indeed dropped. Still, beating expectations was enough to lift JNJ shares, which have rallied 6% in five days thanks to a strong report.
But this is a dividend stock list, so investors looking for yield should pay attention to some other important news — namely, that J&J has raised distributions for 50 years in a row and has a 10-year dividend growth rate of 12.4% per year — making it one of the most reliable payers on Wall Street and one of InvestorPlace‘s Dependable Dividend Stocks. In July, JNJ pushed its payout to 61 cents a share — almost triple the 20.5 cents quarterly it paid back in 2003.
Of course, J&J has hit some headwinds thanks to quality control issues, product recalls and questions about management. But a new Johnson & Johnson CEO at the helm is hoping to change all that in the months ahead.
A plus while you wait for a corporate turnaround is the nice 3.4% dividend yield. And unlike some Big Pharma stocks that pay nice yields but might be gutted by patent expirations, JNJ consumer health offerings like Band-Aid and Tylenol provide its steadiest revenue stream beyond vaccines and prescription medical products.