E Johnson & Johnson: A Top Kevin O'Leary Dividend Stock

For many investors, Kevin O’Leary is best known as “Mr. Wonderful” for his appearance on the TV show Shark Tank. But he should also be known as one of the most influential stock market investors. Kevin O’Leary is also Chairman of O’Shares, which manages assets through a number of funds.

The O’Shares FTSE U.S. Quality Dividend ETF (OUSA) owns stocks that display a mix of quality, growth, and income. Healthcare giant Johnson & Johnson (JNJ) is one of the top 10 holdings of OUSA. As a Dividend King, Johnson & Johnson is a top Kevin O’Leary dividend stock.

Why Johnson & Johnson?

Johnson & Johnson is a stock that possesses many of the qualities desirable for value and income investors like Kevin O’Leary. The company is a diversified healthcare conglomerate, with leading brands across multiple areas including pharmaceuticals, medical devices, and consumer products. In all, Johnson & Johnson generates annual revenue above $81 billion.

2018 was a highly successful year for Johnson & Johnson, with broad-based growth across its three business segments. Worldwide pharmaceutical sales led the way with 12% sales growth for the year. Growth from new products like Stelara, Imbruvica, and Zytiga helped the company realize double-digit growth last year.

Medical device sales increased 1.5%, while consumer product sales increased 2%. Johnson & Johnson has a strong consumer franchise, with leading brands such as Neutrogena, Tylenol, Aveeno, and Listerine.

J&J expects to generate 2.5% to 3.5% sales growth for 2019, along with 4.3% to 5.5% adjusted EPS growth. The company continues to generate strong results, particularly in its pharmaceutical business where the company has a number of potential blockbusters to be released in the coming years. This will allow J&J to continue growing its dividend for many years.

The Ultimate Dividend King

Johnson & Johnson is a legendary stock for income investors, due to its long history of annual dividend increases. In fact, Johnson & Johnson has increased its dividend for 57 consecutive years. Not only is it a member of the Dividend Aristocrats, it is also a member of the even more exclusive list of Dividend Kings. The Dividend Kings are a select group of stocks with at least 50+ consecutive years of dividend increases.

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