Johnson & Johnson (NYSE:JNJ) is included among the 14 Best Pharma Dividend Stocks to Buy in 2025.
A smiling baby with an array of baby care products in the foreground.
Johnson & Johnson 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’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 currently offers a quarterly dividend of $1.30 per share and has a dividend yield of 3.18%, as of July 17.
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