5 Best Dividend Stocks to Buy for Passive Income

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1. Johnson & Johnson (NYSE:JNJ)

Number of Hedge Funds: 113

Dividend Yield as of June 26: 2.10%

On June 26, Guggenheim lifted its price recommendation on Johnson & Johnson (NYSE:JNJ) from $266 to $270. It reiterated a Buy rating on the shares. The firm updated its outlook ahead of the company kicking off Q2 earnings season for the large-cap biopharma group on Wednesday, July 15. After reviewing the latest prescription data, recent company developments, and management’s comments since the Q1 earnings call in April, Guggenheim updated its model. The firm told investors it expects Johnson & Johnson to report Q2 revenue and earnings that are broadly in line with current FactSet consensus estimates.

In another development, Reuters reported on June 8 that JNJ will acquire biotech company Firefly Bio for $1 billion in cash. The move came as the company works to expand its cancer drug pipeline. Firefly’s Firelink platform uses antibodies to deliver a protein-degrading drug directly into cancer cells. Johnson & Johnson believes the technology could target tumors more precisely while sparing more healthy tissue than existing treatments.

The company said the platform, which focuses on tumors with a mutation in the KRAS gene, “bolsters Johnson & Johnson’s oncology pipeline and ambition to develop targeted medicines for the most prevalent and hard-to-treat solid tumors with high unmet need.”

Johnson & Johnson (NYSE:JNJ) and its subsidiaries develop, manufacture, and sell a wide range of healthcare products, with operations spanning pharmaceuticals, medical technology, and other healthcare businesses.

While we acknowledge the potential of JNJ to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than JNJ and that has 100x upside potential, check out our report about the cheapest AI stock.

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