Retirement Stock Portfolio: 5 Healthcare Stocks To Consider

2. Johnson & Johnson (NYSE:JNJ)

Number of Hedge Fund Holders: 88

Johnson & Johnson (NYSE:JNJ), a multinational healthcare and pharmaceutical company, reported $502 million vaccine revenue in Q3 2021. In its recently announced Q3 results, the company posted an EPS of $2.60, versus the estimates of $2.35. Johnson & Johnson (NYSE:JNJ) ranks second on our list of the best healthcare stocks to buy.

At the end of Q2, Fundsmith LLP was the largest shareholder of Johnson & Johnson (NYSE:JNJ), with shares worth $1.17 billion. In addition to this, 88 hedge funds tracked by Insider Monkey were bullish on the company in Q2, valued at over $7 billion. In the previous quarter, 81 hedge funds had positions in Johnson & Johnson (NYSE:JNJ), highlighting a positive hedge fund sentiment.

Johnson & Johnson (NYSE:JNJ) has a track record of 60 years of dividend growth. The company pays an annual dividend of $4.24 per share, yielding 2.57% and with a dividend payout ratio of 52.8%. This September, Wells Fargo lifted its price target on Johnson & Johnson (NYSE:JNJ) to $187, with an Equal Weight rating on the shares.

Distillate Capital mentioned Johnson & Johnson (NYSE:JNJ) in its Q2 2021 investor letter. Here is what the firm has to say:

“The largest additions in the rebalance, Johnson & Johnson was around 50 and 40 basis points incrementally. J&J underperformed in the quarter while its normalized free cash flows held steady and so its position size was topped off to match the stable cash flows.”