4 Top Dividend Aristocrats To Add To Your Retirement Portfolio

Stronger-than-expected labor-market-data drove the stock market higher yesterday, but investors are skeptical about President Biden’s proposed global minimum corporate tax rate of 15%, and inflation concerns are expected to contribute to their discomfort. Therefore, the market is far from being stable and continued volatility is surely in the offing. So, for investors looking to generate a steady stream of income from their investment portfolios, stocks that are a part of the prestigious dividend aristocrats group could be the best bets now.

Aristocrat, Tux, Animal, Bowler, Gent


While the dividend aristocrats may not deliver high dividend yields, these companies enjoy steady profits and have consistently increased their dividends for at least the past 25 years. Because several companies cut or suspended their dividends last year, the interest in the dividend aristocrats has been growing given their long-term consistency. Investors’ interest in these companies is evident in the ProShares S&P 500 Dividend Aristocrats ETF’s (NOBL) 14.3% gains over the past three months compared to SPDR S&P 500 Trust ETF’s (SPY) 10.2% returns.

Johnson & Johnson (JNJ), Target corporation (TGT), Becton Dickinson and Company (BDX), and Emerson Electric Co. (EMR) are four dividend aristocrats that have increased their dividends for at least the past 40 years. So, we think investors seeking to receive a steady stream of income and protect their portfolio from market volatility should consider buying these shares.

Johnson & Johnson 

Operating for more than a century, JNJ is one of the top players in the healthcare field. The company operates through three segments: Consumer, Pharmaceutical and Medical Devices. Its research facilities are in the United States, Germany, India, and the United Kingdom, among other locations.

The company has declared a $1.06 quarterly dividend per share, payable on June 8, 2021. This equates to $4.24 per share on a full-year basis. JNJ increased its dividend for the 59th consecutive year. It is not just a dividend aristocrat, but rather a dividend king. Over the past five years, JNJ’s dividend pay-outs have grown at a 6% CAGR. While its four-year average dividend yield is 2.6%, its current dividend translates to a 2.5% yield.

JNJ’s revenue for the first quarter, ended March 31, 2021 increased 7.9% year-over-year to $22.32 billion. The company’s net income came in at $6.20 billion, up 6.9% from the prior-year quarter. Also, its EPS increased 6.9% from the same period last year to $2.32.

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