What Is Considered a Good Stock Dividend? 2 Healthcare Stocks That Fit the Bill.

Core Viewpoint - Johnson & Johnson and Medtronic are highlighted as strong dividend stocks due to their consistent dividend increases and attractive yields, despite facing certain challenges [1][10]. Group 1: Johnson & Johnson - Johnson & Johnson has a remarkable track record with over six decades of annual dividend increases, qualifying it as a Dividend King [2]. - The company operates a large, well-positioned business diversified across medical devices and pharmaceuticals, with strong R&D and marketing capabilities [4]. - The current dividend yield for Johnson & Johnson is 3.4%, significantly higher than the S&P 500's 1.3% and the average healthcare stock's 1.8%, indicating it is attractively priced [5]. - Johnson & Johnson is currently facing a significant class-action lawsuit related to talcum powder, creating uncertainty for investors [6]. Group 2: Medtronic - Medtronic has increased its dividend for 48 consecutive years, just two years short of becoming a Dividend King [7]. - The company is a major player in the medical device industry, with strong R&D and marketing capabilities, and its current dividend yield is approximately 3.2%, which is appealing compared to the broader market [8]. - Medtronic has experienced slow growth due to a lack of new innovations in R&D, but this trend is changing as new products are being introduced and management is focusing on profitable growth areas [9]. Group 3: Dividend Stock Characteristics - Both Johnson & Johnson and Medtronic are considered good dividend stocks due to their attractive yields, which are near the high end of their historical ranges [10]. - High-yield stocks often come with associated risks; for Johnson & Johnson, the risk is the ongoing lawsuit, while for Medtronic, it is the recent slow growth [11].