2 Very Healthy High-Yield Dividend Stocks to Buy for a Safe and Growing Passive Income Stream

Core Insights - Medtronic and Johnson & Johnson are highlighted as strong dividend-paying stocks with healthy financial profiles, making them attractive for investors seeking reliable income streams [1][12] Medtronic - Medtronic offers a dividend yield of 3.1%, significantly higher than the S&P 500's 1.2%, translating to $3.10 in dividends per $100 invested compared to $1.20 for the S&P 500 [2] - The company generated $4.5 billion in net cash from operating activities in the first nine months of the year, with $3.1 billion in free cash flow after investing $1.4 billion in capital expenditures, easily covering $2.6 billion in dividends [3] - Medtronic repurchased nearly $3 billion of its stock and has a strong balance sheet with A/A3 bond ratings, allowing for potential acquisitions [4] - The company has a history of increasing dividends for 47 consecutive years at a compound annual growth rate of 16% [5] - Expected organic revenue growth of about 5% this fiscal year, with a robust pipeline of product approvals, indicates continued growth potential [6] Johnson & Johnson - Johnson & Johnson also offers a 3.1% dividend yield, supported by a strong financial profile and an AAA bond rating, one of the highest globally [7][8] - The company has a market cap of nearly $400 billion, with only $12 billion in net debt and generates approximately $20 billion in free cash flow annually, covering its $11.8 billion dividend payments [8] - Johnson & Johnson has committed $32 billion to strategic acquisitions over the past year, including a $14.6 billion deal for Inter-Cellular Therapies, enhancing its product portfolio [9] - The company has increased its dividend for 62 consecutive years, placing it among the elite Dividend Kings [10] Conclusion - Both Medtronic and Johnson & Johnson exhibit strong cash generation and financial flexibility, positioning them well for sustained dividend growth and long-term investment appeal [12]