2 Rock-Solid Dividend Stocks to Buy for Steady Passive Income

Core Viewpoint - Dividend stocks are highlighted as the best option for investors seeking consistent passive income, particularly emphasizing companies with stable cash flows and a history of rewarding shareholders [1] Group 1: Company Overview - Johnson & Johnson (JNJ) is a global healthcare company involved in prescription drugs, medical devices, and technologies, generating stable revenue and strong cash flow [2] - JNJ has a long history of paying and increasing dividends for over six decades, earning the title of a Dividend King, with a forward yield of 2.5% compared to the healthcare average of 1.6% [2] Group 2: Financial Performance - In Q3, JNJ reported global sales of $24 billion, reflecting a 5.4% year-over-year growth, despite challenges from the loss of exclusivity of STELARA [3] - Adjusted net earnings reached $6.8 billion, with adjusted diluted EPS of $2.80, marking a 15.7% increase year-over-year [3] - Free cash flow generation was strong, totaling $14 billion in the first nine months of the year, supporting innovation and shareholder returns [3] Group 3: Strategic Initiatives - JNJ plans to spin off its Orthopaedics business to focus on six key growth areas: oncology, immunology, neuroscience, cardiovascular, surgery, and vision, which is expected to enhance MedTech growth and margins [4] - The company maintains a commitment to its dividend, stating that the spin-off will not impact dividend payments [4] Group 4: Future Outlook - Management anticipates revenue growth of over 5% by 2026, with potential profitability increases from new product launches and margin improvements [5] - JNJ is positioned as a strong dividend stock for investors seeking consistent passive income backed by solid fundamentals [5]