The Motley Fool·2025-06-13 08:25Group 1: Johnson & Johnson Overview - Johnson & Johnson operates primarily in pharmaceuticals and medical devices after spinning off its consumer-products operations, maintaining a strong position in both sectors [3] - The company is recognized as a Dividend King, having increased its dividend for 63 consecutive years, indicating a robust business model [4] - Johnson & Johnson is currently facing a significant class-action lawsuit related to contaminated talcum powder, which poses a substantial risk and uncertainty for investors [5][6] Group 2: Medtronic Overview - Medtronic is one of the largest medical device manufacturers globally and competes directly with Johnson & Johnson in the medical device sector [9] - The company has increased its dividend for 48 consecutive years, showcasing a strong business foundation comparable to Johnson & Johnson [9] - Medtronic is not currently embroiled in high-profile lawsuits, which positions it more favorably compared to Johnson & Johnson [12] Group 3: Investment Considerations - Both Johnson & Johnson and Medtronic offer similar dividend yields of approximately 3.3%, suggesting attractive pricing for dividend-focused investors [10] - Medtronic is undergoing a business revamp to focus on more profitable product lines and is expected to spin off its diabetes division, which could enhance profitability [12][13] - The downside risk for Medtronic is primarily related to the potential delays in its growth-driven revamp, but the company maintains transparency with its investors [16]