2 Very Healthy Dividend Stocks to Hold for Decades of Income

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]