Dow Dividend Checkup: Johnson & Johnson

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The following video is part of our "Motley Fool Conversations" series, in which analyst John Reeves discusses topics across the investing world.

Johnson & Johnson is one of the great American companies of all time -- we, of course, immediately think of Band-Aids and baby powder, but maybe don't realize its dominant position across a lot of health care segments. It recently raised its yield by 7%, which means it's hiked its payout every year for the past 50 years. That compares well to Procter & Gamble, which has done it for 56 years. Johnson & Johnson's yield is 3.84%, which compares to 3.1% for the Dow as a whole. That puts it in the neighborhood of big pharma stocks Merck and Pfizer, which both yield over 4%. With JNJ you have a high yield and a strong business. And Morningstar thinks its drug pipeline is extremely strong. Some product recalls have hurt its traditionally excellent reputation, but John still likes this one over the long-term.

Johnson & Johnson is one of the finest dividend stocks out there. If you'd like to learn about some additional dividend-payers, The Motley Fool has compiled a special free report outlining our top nine dependable, dividend-paying stocks. It's called  "Secure Your Future With 9 Rock-Solid Dividend Stocks." You can access your copy today at no cost! Just click here to discover the winners we've picked.

At the time this article was published John Reevesowns shares of Procter & Gamble. The Motley Fool owns shares of Johnson & Johnson.Motley Fool newsletter services recommendJohnson & Johnson, Pfizer, and Procter & Gamble. Try any of our Foolish newsletter servicesfree for 30 days. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.

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