Does Johnson & Johnson’s Dividend Make It A Buy?

Finding a good dividend stock can be a challenge, as investors need to consider more than just the size of a stock's payouts. The company's stability, its ability to continue paying the dividend, and whether it's likely to increase its dividend payments over time are some other considerations that investors also need to take into account when selecting an income stock.

Although Johnson & Johnson (NYSE: JNJ) may not be having the best year, constantly finding itself in the news for all the wrong reasons, the stock ticks a lot of those boxes off and could be an appealing option for dividend investors. Let's take a look to see if it belongs in your portfolio today.

At first glance, J&J's dividend of 2.6% may not warrant much enthusiasm. There are plenty of higher-yielding dividend stocks out there that investors can choose from if their main priority is a good payout. Where J&J's dividend stands out from the pack is in its stability and growth.

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Source Fool.com