Johnson & Johnson (JNJ), Unilever plc (ADR) (UL): Is This Great Dividend Stock in Danger?

A good reason for holding: Amazing dividend yield

P&G may be having trouble with organic growth, but the increasing dividend is definitely a reason to hold.

The dividend has more than doubled since 2005 ($0.28 per quarter) and it is crisis-proof (notice it increased during the 2007-2008 crisis). The current dividend of $0.6015 per quarter, higher than Unilever plc (ADR) (NYSE:UL) but lower than Johnson & Johnson (NYSE:JNJ), suggests an annual yield above 3% and gives safety to investors.

The Procter & Gamble Company (NYSE:PG) is struggling with growth rates. But as the household product manufacturer with more billion-dollar brands than any other competitor, I believe that its core cash flow is safe. An amazing dividend and the return of superb CEO Lafley add more reasons to hold. Considering market pressure from Unilever plc (ADR) (NYSE:UL) in emerging markets, and the strength of Johnson & Johnson (NYSE:JNJ) beauty products in North America, the road to growth is certainly long and challenging. But to say P&G is in danger is too pessimistic. We can agree with the fact that this is not a growth stock, yet this could be a great investment for those looking to add more safety to their portfolios.

Adrian Campos has no position in any stocks mentioned. The Motley Fool recommends Johnson & Johnson, Procter & Gamble, and Unilever. The Motley Fool owns shares of Johnson & Johnson.

The article Is This Great Dividend Stock in Danger? originally appeared on Fool.com.

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