14 Best Pharma Dividend Stocks to Buy in 2025

5. Johnson & Johnson (NYSE:JNJ)

Number of Hedge Fund Holders: 91

Johnson & Johnson (NYSE:JNJ) has long been considered one of the most dependable dividend stocks, having increased its payouts for 63 consecutive years, including a 4.8% raise earlier this year. This consistency earns it a place among the elite Dividend Kings, a group of companies with more than 50 straight years of dividend growth.

Johnson & Johnson (NYSE:JNJ)’s second-quarter results once again underscored the strength behind its dividend. During the first half of the year, the company generated roughly $6.2 billion in free cash flow after spending $6.7 billion on research and development. That amount comfortably covered its dividend obligations, which totaled $6.1 billion so far this year.

Although this suggests a relatively tight payout ratio, there appears to be little cause for concern. Free cash flow is only slightly lower compared to the $7.5 billion the company posted during the same period last year. Johnson & Johnson (NYSE:JNJ) currently offers a quarterly dividend of $1.30 per share and has a dividend yield of 3.18%, as of July 17.