Although there has been a lot of turmoil in the markets in recent weeks, many top dividend stocks are continuing to display their stability and resiliency, as they extend their dividend growth streaks. Last week, healthcare giant Johnson & Johnson (NYSE:JNJ) was among the latest to do so, when it announced it would be increasing its dividend by 4.8%.
On April 15, the company said its new quarterly dividend would be $1.30, up from $1.24. And with the increase, Johnson & Johnson has now raised its dividend for an impressive 63 consecutive years. Once a stock gets to 50 years, it’s considered a Dividend King, belonging to an impressive group of income stocks that investors often see as among the safest dividend stocks to own.
Annually, Johnson & Johnson investors will now collect $5.20 per share in dividends. Based on the stock’s current price, that translates into a dividend yield of 3.3%, which is more than double the S&P 500 average of 1.5%. To collect $1,000 in dividends from the stock over the course of the year, you would need to invest approximately $30,303.
Over the years, Johnson & Johnson has been a fairly safe stock to own, and could appeal to investors who want stability and recurring dividend income. Its returns over the past five years are less than 4%, which is disappointing if your goal is capital appreciation and to see your investment rise in value. But with a low beta and a growing payout, this can still make a good stock to hold if you focus is on dividends.