Dividend Stocks to Buy: Johnson & Johnson (JNJ)
Investing Type: Conservative
Dividend Yield: 2.6%
Johnson & Johnson (NYSE:JNJ) is one of the market’s most well-known buy-and-hold dividend stocks, and it actually offers slow and steady growth as well.
JNJ stock is trading just a few bucks from all-time highs now that it’s rallying following April’s post-earnings dip. The downside to those highs, though, is that JNJ trades at a sub-3% dividend stock.
Johnson & Johnson is up about 100% over the past five years, so investors have certainly been rewarded in this low-risk consumer staples/healthcare hybrid play. And it’s tough to find companies like JNJ, which is both a safe blue-chip stock but also grinding out such a high CAGR.
But for all its growth, Johnson & Johnson is certainly a conservative play. Analysts estimates 5% sales growth this year and next, alongside 6% to 7% earnings growth in both years. Consumer brands such as Band-Aids, Neutrogena, Mylanta, Motrin and Tylenol are never going away, and will help prop JNJ up even when the economy is tight.
JNJ trades at about 17 times forward earnings projections, which isn’t grand, but hey — premium blue-chip stocks deserve a little premium.