Dividends4Life: Johnson & Johnson: An Excellent 3% Dividend Choice For Risk-Averse Income Investors

Income investors on the lookout for stable, reliable dividend payers have to look no further than Johnson & Johnson (NYSE:JNJ) to have their investment needs met. Basically, there are two groups of dividend stocks that compete for the attention of income investors: 1.) High-yield stocks that compensate investors for the lack of dependable dividends/distributions with a high cash flow yield; and 2.) Stocks of companies with high earnings and dividend visibility that have a history of dividend growth throughout different economic periods and throughout a broad range of markets. These stocks usually have much lower dividend yields. One such company making it into the second group of income investments is Johnson & Johnson.

Johnson & Johnson's dividend growth since 1997 is impressive. The company has grown its dividend by more than 11% a year over the last 17 years, which makes a strong case for rising yields on cost in the future. Investors who buy JNJ today at a 2.81% dividend yield could very well see their dividend yields rise to 4-5% with sufficient time. The company's ability to pay shareholders in good and bad economic times speaks volumes about its quality as an income vehicle.

Source: Seeking Alpha

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