Dividend Stocks to Buy Now: Johnson & Johnson and Abbott

Stocks to buy now offer passive income through dividends. Johnson & Johnson and Abbott Laboratories lead with strong dividend payments and growth potential, making them appealing investments for stability and returns.

Date: 21-01-2025

AI Rating: 8

Dividend Stocks Overview
In the report, the focus is on the merits of dividend stocks, specifically highlighting two well-established companies: Johnson & Johnson and Abbott Laboratories. Both stocks offer dividends, which not only serve as a source of passive income but also mitigate losses during market downturns.

Johnson & Johnson (JNJ)
Johnson & Johnson is noted as a Dividend King with a history of increasing dividends for over 60 consecutive years. The company currently provides an annual dividend of $4.96 and has a dividend yield of 3.3%. This yield is significantly higher than the S&P 500 average of 1.2%. The report emphasizes that the company has a robust free cash flow of $19 billion, showcasing its capacity to sustain dividend payments. Additionally, J&J's sales have been improving, with a reported growth of over 5% in total sales and double-digit growth in its pharmaceuticals segment, indicating strong potential earnings and revenue growth.

Abbott Laboratories (ABT)
Likewise, Abbott Laboratories is recognized for its reliable dividend history, also classified among the Dividend Kings. The company pays an annual dividend of $2.36 with about a 2% dividend yield. Abbott's free cash flow stands at $6.4 billion, reinforcing its ability to maintain dividend payments. Despite some revenue challenges due to decreased demand for coronavirus testing, the overall revenue of Abbott advanced more than 8%, thanks to gains in its medical devices sector. This diversified portfolio secures a stable earnings outlook, providing additional reassurance to investors.

Stocks: JNJ ABT