Johnson & Johnson's (JNJ) Long Dividend History Makes it a Strong Retirement Dividend Stock

Johnson & Johnson (NYSE:JNJ) is included among the 10 Best Dividend Stocks to Buy for Retirement.

Johnson & Johnson (NYSE:JNJ) stands out as a financially strong company, being one of only two firms globally with a perfect AAA credit rating, higher than that of the US government. By the end of the second quarter, it reported net debt of $32 billion, made up of $51 billion in total debt offset by $19 million in cash. This is relatively modest considering the company’s market capitalization exceeds $400 billion.

Johnson & Johnson (NYSE:JNJ)’s diversified healthcare operations produce strong and consistent cash flow. Last year, the company generated $20 billion in free cash flow, even after allocating around $17 billion toward research and development, roughly 19.4% of its total sales. This level of R&D spending placed the firm among the top investors in innovation across all industries. Despite its substantial R&D commitments, J&J still had more than enough free cash flow to cover its $11.8 billion in dividend payouts, leaving the company with significant surplus funds.

Johnson & Johnson (NYSE:JNJ) holds a 63-year track record of consistent dividend growth, which makes it one of the best dividend stocks for retirement. The company currently offers a quarterly dividend of $1.30 per share and has a dividend yield of 3.11%, as of July 30.

While we acknowledge the potential of JNJ as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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