5 Dividend Stocks That Raised Their Dividends in 2022

2. Johnson & Johnson (NYSE:JNJ)

Number of Hedge Fund Holders: 83
Dividend Yield as of September 20: 2.74%

Johnson & Johnson (NYSE:JNJ) is one of the most prominent pharmaceutical companies in the US. The company specializes in medical devices, vaccines, and other healthcare products. In April, it raised its quarterly dividend to $1.13 per share, from its previous dividend of $1.06 per share. This was the company’s 60th consecutive year of dividend growth. The company’s shares yield at 2.74%, as of September 20.

In Q2 2022, Johnson & Johnson (NYSE:JNJ) reported total year-over-year sales growth of 3% to $24 billion. The company’s operating cash flow for the quarter came in at $5.58 billion, up from roughly $4 billion in the previous quarter. Its free cash flow generation also remained strong at $4.7 billion, growing from $3.3 billion in the preceding quarter. For FY22, the company expects its revenue to fall between $93.3 billion to $94.3 billion.

At the end of June 2022, 83 hedge funds owned stakes in Johnson & Johnson (NYSE:JNJ), the same as in the previous quarter, as per Insider Monkey’s data. The total value of these stakes over $6.7 billion. Rajiv Jain, Ken Fisher, and Ray Dalio were some of the company’s most prominent stakeholders in Q2.

Mayar Capital mentioned Johnson & Johnson (NYSE:JNJ) in its Q2 2022 investor letter. Here is what the firm has to say:

“J&J is currently our largest position and a long-standing holding. The majority of the group’s sales comes from its collection of pharmaceutical franchises, but a large majority (~45%) comes from its collection of medical device businesses and its consumer brands.

Here’s how JNJ make and spend a dollar of revenues: As of 2021, about 55 cents of that dollar comes from its pharmaceutical sales – sales of drugs to pharmacies and distributors – while 30 cents come from the sale of medical devices, such as surgery equipment and orthopaedics. The rest of that dollar in sales comes from sales of JNJ’s consumer brands such as Listerine mouthwash, Nicorette nicotine tablets and Neutrogena cosmetics.

To make that dollar, however, JNJ typically spends about 25 cents to make the products themselves and another 27 cents on marketing and general administrative functions. This leaves JNJ with about 48 cents on the dollar in profit…”