12 Best Dow Jones Dividend Stocks to Buy According to Hedge Funds

2. Johnson & Johnson (NYSE:JNJ)

Number of Hedge Fund Holders: 103

Dividend Yield as of January 27: 2.32%

On January 22, Scotiabank lifted its price target on Johnson & Johnson (NYSE:JNJ) to $265 from $230. The firm reiterated an Outperform rating after the company’s Q4 results.

The bigger takeaway was how well J&J seems to be managing its patent pressures. Stelara is already dealing with biosimilar competition, and more challenges are lined up. The company expects generics to hit Opsumit in the US in the second half of 2026. Simponi is likely to face competition in Europe in the first half of that year, with the US potentially following later on. Even so, the outlook remains steady. At the midpoint of guidance, Johnson & Johnson sees 2026 sales growing about 6.7%, with adjusted EPS up roughly 6.9%.

The portfolio is doing a lot of the heavy lifting. By the end of 2025, the company had 28 platforms, each generating at least $1 billion a year. Two newer names have joined that list: the Shockwave intravascular lithotripsy device and the cancer therapy Carvykti. Thirteen brands are now growing at double-digit rates, which gives the business some real balance.

There is also a busy year ahead on the pipeline front. Johnson & Johnson is aiming for regulatory approvals on five drugs this year and plans to file two more. Results from at least 10 Phase 3 trials are expected as well.

Johnson & Johnson (NYSE:JNJ) operates across the healthcare space, with businesses focused on researching, developing, manufacturing, and selling a broad range of medical products worldwide.