5 Best Quality Dividend Stocks to Buy According to Reddit

2. Johnson & Johnson (NYSE:JNJ)

Number of Hedge Fund Holders: 104

Johnson & Johnson (NYSE:JNJ) operates across a broad part of the healthcare industry. Through its subsidiaries, it focuses on developing, manufacturing, and selling medical products. The business is organized into two main segments: Innovative Medicine and MedTech.

Most of the company’s growth comes from Innovative Medicine. This segment includes higher-margin drugs that are protected by patents, covering areas like cancer, autoimmune diseases, cardiopulmonary conditions, and neurological disorders. Over the next few years, management is leaning on newer treatments to carry that growth forward. Drugs like Tremfya, used for autoimmune conditions, and Icotye for psoriasis are expected to help offset the loss of exclusivity for Stelara in early 2025.

In Q1 2026, the company delivered results that came in ahead of expectations. It also raised its full-year guidance, though in a measured way, and showed steady momentum across several products. Darzalex, its blood cancer treatment, brought in about $4 billion in sales. Tremfya generated $1.6 billion, supported by its use in inflammatory bowel disease and psoriasis.

There is still a clear pressure point. Stelara, which has been a major contributor, lost patent protection last year. The impact showed up quickly. Sales dropped from $1.6 billion in Q1 2025 to $656 million in Q1 2026 as lower-cost alternatives entered the market.

However, Johnson & Johnson (NYSE:JNJ) still looks like a steady long-term holding. The company has a deep drug pipeline, and it has built a reputation for consistency, with 64 straight years of dividend increases.