Dow Dividend Checkup: Johnson & Johnson

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.

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At the time thisarticle 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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