#10: Johnson & Johnson
Current Dividend Yield: 3.2%
Performance So Far in 2013: +8% (vs. 6% for the S&P 500)
Johnson & Johnson (NYSE:JNJ) — the pharma/consumer hybrid behind brands like Band-Aid, Tylenol and Johnson’s baby products — hasn’t exactly been a growth machine in the past few years. Still, it’s one of this list’s best returners so far in 2013, with its 8% gains topping both the S&P 500 and Dow Jones.
JNJ put Alex Gorsky at the helm last year to revive a company suffering from quality control problems, recalls and other issues contributing to years of slow returns. So far, so good on that front — Johnson & Johnson has eased off on shooting itself in the foot.
The most recent quarter was something of a mixed bag. Q4 earnings of $1.19 per share topped estimates, but that came on slightly disappointing revenues of $17.6 billion. Also discouraging was a fiscal 2013 earnings estimate of $5.35 to $5.45, which was 4 cents below consensus forecasts. Apparently it wasn’t too discouraging, though — after an initial dip, JNJ is up 3% since that Jan. 22 report.
Johnson & Johnson’s pipeline has been looking good, too. In the past few months, JNJ has received FDA approvals for several treatments, including Xarelto (deep vein thrombosis/pulmonary embolism) and Sirturo (drug-resistant tuberculosis).
Those should help to keep Johnson & Johnson’s longstanding dividend healthy and growing. The Dependable Dividend Stock has increased its payout every year for over half a century, which includes roughly 12% in annual improvements in the past decade. JNJ goes ex-dividend Feb. 22, so there’s still time to get in to receive its March 12 payout and, if history is any indication, we should be getting an announcement sometime in April about yet another hike to its dividend.