The company's dividend yield is not high, but the stock has also delivered strong price appreciation.
Very few publicly traded stocks have a longer streak of rising dividends.
If you're not aware of them, there's a group of stocks known as Dividend Kings. This select group of companies have all increased their dividends annually for at least 50 consecutive years.
A few of these Dividend Kings have done much better. Drug and medical device maker Johnson & Johnson (NYSE: JNJ) recently increased its dividend for the 64th consecutive year. Only nine publicly traded stocks can claim a longer streak of rising dividends.
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What does that mean for J&J shareholders? Well, in April, Johnson & Johnson declared a 3.1% increase to its quarterly dividend, from $1.30 per share to $1.34. That makes its new annual dividend $5.36 a share.
If you own $10,000 in J&J stock, that would be equal to about 38 shares at the current share price of about $260. That means that the investment would yield about $204 a year in dividend income.
To be sure, that's not a king's ransom, because J&J's forward dividend yield -- the ratio of its dividend to its share price -- is a modest 2.07%. Many stocks in the S&P 500 pay higher dividend yields, with some exceeding 5%.
But in addition to its dividend, Johnson & Johnson stock has delivered strong price appreciation in recent years. The stock is up 50% over the past 52 weeks and has climbed 26% in 2026. Compare that to the broader market as measured by the S&P 500, which is up 21.6% over the past year and 13% this year.
So, with J&J stock, you're getting both growth and income.
Before you buy stock in Johnson & Johnson, consider this:
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Matthew Benjamin has no position in any of the stocks mentioned. The Motley Fool recommends Johnson & Johnson. The Motley Fool has a disclosure policy.