),Johnson & Johnson (
) is a household name that offers steady profit growth, making it
a classic dividend play for income investors.
The fellow S&P 500 Dividend Aristocrat's wide range of
consumer brands include Aveeno, Band-Aid, Tylenol and Splenda.
But medical devices, diagnostic equipment and pharmaceuticals
account for the bulk of its revenue.
J&J may be a 128-year-old company, but it continues to
innovate and stay on top of advancements in medical
On Tuesday, biotech startup Alector announced a partnership
with J&J's Janssen Pharmaceuticals unit to research and
develop treatments for Alzheimer's disease.
Earlier this month, the European Commission granted
conditional approval to J&J's Sirturo to help treat
multidrug-resistant tuberculosis in adults.
And last month, J&J's Biosense Webster unit won FDA
approval for its ThermoCool SmartTouch catheter, which helps
doctors treat atrial fibrillation by measuring contact force
applied to the heart wall during catheter ablation
The New Brunswick, N.J.-based company has delivered payouts to
shareholders for 51 consecutive years and has grown adjusted
earnings for 30 years. Analysts expect it to extend that streak
with a 6% increase in per-share earnings this year and 8% in
The steady track record helps J&J land a three-year and
five-year Earnings Stability Factor of 1, on a scale of 0 to 99.
The lower the number, the more stable the profit.
J&J paid out a dividend of 64 cents a share for the first
quarter, or $2.64 on an annual basis. That works out to a yield
of 2.8%, above the S&P 500's average 1.9% payout.
The stock appears to be in consolidation mode after last
year's 31% advance, slightly ahead of the S&P 500 and the Dow
industrial's 30% and 27% respective gains. It's 3% off its Nov.
25 intraday high of 95.99.