Dividend-paying stocks are the gift that keeps on giving. They pay you a recurring stream of passive income that you can use to make new investments or cover some of your expenses. The best dividend stocks will send you more money each year by increasing their payments. Anybody can gift oneself with a multiyear supply of passive income by purchasing shares of a high-quality dividend-paying company. Three great ones to consider buying are Coca-Cola (KO -0.27%), Johnson & Johnson (JNJ 0.55%), and NextEra Ener ...

Company Performance - Johnson & Johnson (JNJ) ended the latest trading session at $145.27, reflecting a +0.55% adjustment from the previous day's close, which lagged behind the S&P 500's gain of 0.73% [1] - Over the past month, JNJ shares have decreased by 6.9%, underperforming the Medical sector's loss of 3.8% and the S&P 500's gain of 0.34% [1] Upcoming Earnings - Johnson & Johnson is scheduled to release its earnings on January 22, 2025, with an expected EPS of $2, indicating a 12.66% decline from the same quarter last year [2] - The Zacks Consensus Estimate projects net sales of $22.54 billion, which is a 5.37% increase from the year-ago period [2] Full Year Projections - For the full year, the Zacks Consensus Estimates forecast earnings of $9.94 per share and revenue of $88.84 billion, showing changes of +0.2% and -4.49% respectively from the previous year [3] Analyst Estimates - Recent modifications to analyst estimates for Johnson & Johnson are crucial as they reflect near-term business trends, with upward revisions indicating analysts' positive outlook on the company's operations [4] - The Zacks Rank system, which incorporates these estimate changes, provides actionable ratings for investors [5] Zacks Rank and Valuation - Johnson & Johnson currently holds a Zacks Rank of 3 (Hold), with the Zacks Consensus EPS estimate having increased by 0.04% over the last 30 days [6] - The company is trading at a Forward P/E ratio of 14.54, which is a premium compared to the industry average Forward P/E of 13.74 [7] Industry Context - The Large Cap Pharmaceuticals industry, part of the Medical sector, has a Zacks Industry Rank of 131, placing it in the bottom 48% of all industries [8] - Johnson & Johnson has a PEG ratio of 2.49, compared to the industry average PEG ratio of 1.44 [10]

Group 1 - The article discusses the addition of Johnson & Johnson (NYSE: JNJ) stock to a portfolio to rebalance it after significant rallies in growth stocks, indicating a shift towards defensive plays [1] - The author emphasizes the importance of balancing a portfolio with low-volatility dividend-paying stocks alongside growth opportunities, reflecting a well-rounded investment strategy [1] - The analysis focuses on high-quality companies with reasonable valuations rather than seeking deep discounts, highlighting the potential risks associated with excessively cheap stocks [1] Group 2 - The author has a beneficial long position in JNJ shares, indicating confidence in the stock's performance [2] - The article expresses personal opinions and does not involve compensation from any company mentioned, ensuring an unbiased perspective [2] - The content does not provide specific investment recommendations, emphasizing that past performance is not indicative of future results [3]

Group 1 - Johnson & Johnson's stock closed at $150.47, down 1.24%, underperforming the S&P 500's gain of 0.61% on the same day [1] - Over the past month, Johnson & Johnson's stock has decreased by 3.78%, compared to a 1.45% loss in the Medical sector and a 5.79% gain in the S&P 500 [1] Group 2 - The upcoming earnings disclosure is expected to show an EPS of $1.99, reflecting a 13.1% decline year-over-year, while revenue is projected at $22.54 billion, a 5.37% increase from the previous year [2] - For the full year, earnings are estimated at $9.93 per share and revenue at $88.84 billion, indicating a 0.1% increase in earnings but a 4.49% decrease in revenue compared to the prior year [3] Group 3 - Recent adjustments to analyst estimates for Johnson & Johnson are important as they reflect short-term business trends, with positive revisions indicating a favorable outlook on the company's health and profitability [4] - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), currently places Johnson & Johnson at 3 (Hold), with a steady EPS estimate over the past month [6] Group 4 - Johnson & Johnson has a Forward P/E ratio of 15.34, which is higher than the industry average of 14.51, and a PEG ratio of 2.71 compared to the industry's average of 1.49 [7] - The Large Cap Pharmaceuticals industry, which includes Johnson & Johnson, has a Zacks Industry Rank of 156, placing it in the bottom 38% of over 250 industries [8]

Core Viewpoint - Johnson & Johnson (JNJ) has filed two supplemental biologics license applications (sBLA) for its drug Tremfya, seeking expanded use in pediatric patients for moderate-to-severe plaque psoriasis and active juvenile psoriatic arthritis [1][3] Company Summary - Tremfya is an IL-23 inhibitor already approved for adult patients with plaque psoriasis and active psoriatic arthritis in multiple countries, including the United States and the EU [2] - Tremfya generated sales of $2.7 billion in the first nine months of 2024, reflecting a year-over-year increase of 21.6%, driven by strong market growth and share gains [4] - J&J anticipates Tremfya to become a $5 billion product, particularly with approvals for inflammatory bowel disease (IBD) conditions [7] Product Development - The sBLA for plaque psoriasis is based on data from the phase III PROTOSTAR study in pediatric patients, while the juvenile psoriatic arthritis filing relies on pharmacokinetic extrapolation from adult studies [3] - Tremfya was approved by the FDA for moderately to severely active ulcerative colitis (UC) in September 2023 and is under review in the EU for the same condition, as well as for Crohn's disease (CD) [6] Market Dynamics - There has been an increase in gastrointestinal disorders like UC and CD, driven by genetic, environmental, and lifestyle factors, which is boosting demand for IBD treatments [8] - Major competitors in the IBD market include AbbVie, Eli Lilly, Pfizer, Novartis, Merck, Sanofi, Gilead, and Amgen, all of which are developing new therapies with novel mechanisms of action [9] Competitive Landscape - AbbVie expects its immunology drugs Skyrizi and Rinvoq to double sales in IBD indications in 2024, supported by recent acquisitions of smaller biotech firms [10] - Lilly's new drug Omvoh has been approved for UC, and it has filed for CD in multiple regions, while also acquiring Morphic Therapeutics for IBD treatment [11] - Merck and Roche have made strategic acquisitions to enhance their IBD pipelines, focusing on novel therapies [12][13]

Core Insights - Johnson & Johnson has submitted two supplemental Biologics License Applications (sBLAs) to the FDA for TREMFYA® (guselkumab) to treat children aged 6 and older with moderate-to-severe plaque psoriasis and children aged 5 and older with active juvenile psoriatic arthritis [1][2] - The submissions are based on data from various Phase 3 studies, including the PROTOSTAR study for pediatric plaque psoriasis and extrapolated data from adult studies for juvenile psoriatic arthritis [1][4][5] - The company emphasizes its commitment to addressing the treatment gap for children and adolescents suffering from these conditions, highlighting the debilitating impact of visible skin diseases on this demographic [1][3] Company Overview - TREMFYA® is the first approved monoclonal antibody that selectively targets the p19 subunit of IL-23, a key driver of immune-mediated diseases like plaque psoriasis and psoriatic arthritis [1][6] - Johnson & Johnson maintains exclusive worldwide marketing rights for TREMFYA®, which is already approved for adult patients in multiple countries [6][9] Clinical Study Details - The PROTOSTAR study is a Phase 3 trial evaluating the efficacy, safety, and pharmacokinetics of TREMFYA® in pediatric patients with chronic plaque psoriasis, with co-primary endpoints including Investigator's Global Assessment (IGA) and PASI 75 at Week 16 [4] - The VOYAGE studies assessed TREMFYA® in adults with moderate to severe plaque psoriasis, focusing on achieving clear or almost clear skin and significant improvement in psoriasis severity [4][5] - The DISCOVER studies evaluated TREMFYA® in adults with active psoriatic arthritis, measuring the response rate at Week 24 [5]

Core Insights - Biocon Biologics Ltd has received FDA approval for YESINTEK™ (Ustekinumab-kfce), a biosimilar to Stelara® (Ustekinumab) [1][2] - YESINTEK™ is indicated for the treatment of Crohn's disease, ulcerative colitis, plaque psoriasis, and psoriatic arthritis [2] Company Developments - The company had previously announced a settlement and licensing agreement with Janssen Biotech Inc., Janssen Sciences Ireland, and Johnson & Johnson to commercialize YESINTEK™ in the U.S. by February 22, 2025, following FDA approval [2]

Core Insights - Allocating a significant portion of a dividend portfolio to Johnson & Johnson (NYSE: JNJ) can effectively reduce investment portfolio volatility, serving as a strategic defensive move [1] Group 1: Investment Strategy - The focus is on constructing investment portfolios aimed at generating additional income through dividends by identifying companies with competitive advantages and strong financials [1] - A combination of high Dividend Yield and Dividend Growth companies is recommended to gradually reduce dependence on broader stock market fluctuations [1] - The investment portfolio should be well-diversified across various sectors and industries to minimize volatility and mitigate risk [1] Group 2: Risk Management - Incorporating companies with a low Beta Factor is suggested to further reduce the overall risk level of the investment portfolio [1] - The selection process for high dividend yield and dividend growth companies is meticulously curated, prioritizing total return, which includes both capital gains and dividends [1] Group 3: Portfolio Composition - Suggested investment portfolios typically consist of a blend of ETFs and individual companies, emphasizing broad diversification and risk reduction [1] - The approach aims to maximize returns while considering the full spectrum of potential income sources [1]

Group 1: Johnson & Johnson - Johnson & Johnson is recognized as one of the healthiest companies globally, holding a AAA credit rating, which is higher than that of the U.S. government [2] - The company has a strong balance sheet, ending the third quarter with $36 billion in debt, which is less than 10% of its market cap, and $20 billion in cash and marketable securities, resulting in a net debt of $16 billion [3] - Johnson & Johnson generates approximately $14 billion in annual free cash flow, which is sufficient to cover its quarterly dividend of $3 billion [3] - The company has invested $18 billion in acquisitions this year, enhancing its MedTech and Innovative Medicines platforms, alongside an $11.9 billion investment in research and development [4] - Johnson & Johnson has a history of increasing its dividend for 62 consecutive years, currently offering a dividend yield of over 3%, which is more than double that of the S&P 500 [5] Group 2: Medtronic - Medtronic has delivered 47 consecutive years of annual dividend increases, with a 30% growth in dividends over the past five years and a 130% increase over the past decade [6] - The company has a dividend yield of over 3% and commits to returning at least 50% of its free cash flow to investors through dividends [7] - Medtronic ended its fiscal 2025 second quarter with $1.4 billion in cash and $6.6 billion in investments against $24.6 billion in long-term debt, maintaining a healthy balance sheet [8] - The company produced $1.9 billion in operating cash flow and $1 billion in free cash flow in the first half of its fiscal year, despite heavy R&D investments [8] - Medtronic plans to use its growing free cash flow to increase dividends and pursue strategic acquisitions, recently acquiring Fortimedix Surgical to enhance its product portfolio [9] Group 3: Investment Outlook - Both Johnson & Johnson and Medtronic are noted for their strong free cash flow generation, which supports their ability to pay and grow dividends [10] - Their exceptional records of dividend growth position them as attractive options for investors seeking sustainable dividend income [10]

Core Viewpoint - Johnson & Johnson (J&J) is seeking FDA approval for a subcutaneous (SC) induction regimen of its immunology drug Tremfya for ulcerative colitis (UC), aiming to provide a more convenient treatment option for patients [1][3]. Company Developments - Tremfya has recently been approved by the FDA for treating adults with moderately to severely active UC as both induction and maintenance therapy, with the current induction dose only available via intravenous (IV) administration [2]. - The new SC administration is expected to be more comfortable and quicker to administer compared to the IV option, making it the first IL-23 inhibitor to offer both administration routes for UC [3]. - The regulatory submission is based on positive results from the phase III ASTRO study, which met its primary endpoint of clinical remission at week 12 and achieved all secondary endpoints [4]. Financial Performance - Tremfya generated sales of $2.7 billion in the first nine months of 2024, reflecting a 22% year-over-year increase, driven by strong market growth and share gains [9]. - J&J anticipates Tremfya could become a $5 billion product with potential approvals for both UC and Crohn's disease (CD) indications [9]. Market Context - The inflammatory bowel disease (IBD) market is competitive, with key players like AbbVie and Eli Lilly also making significant strides in this space [10][11]. - J&J's existing drug Stelara is expected to lose market exclusivity in the U.S. next year, and its sales will be affected by price cuts under the U.S. government's drug price negotiation program starting in 2026, making Tremfya's label expansion crucial for maintaining revenue [8]. Industry Trends - There has been an increase in the prevalence of IBD due to genetic, environmental, and lifestyle factors, which is driving demand for effective treatments [7]. - The focus on early diagnosis and favorable reimbursement policies in developed countries further supports the growth of IBD treatment options [7].