Johnson & Johnson
- >>> 4 Top Stocks to Buy and Hold for the Next Decade
These stocks could grow exponentially in coming years.
by Neha Chamaria
Aug 28, 2021 https://www.fool.com/investing/2021/08/28/4-top-stocks-to-buy-and-hold-for-the-next-decade/?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article
Investing in high-growth industries is the key to making money.
Utilities are safe investments, but some are also tremendous growth stocks.
Healthcare and clean energy offer mind-boggling investing opportunities right now.
COVID-19 vaccine could be a shot in the arm for this Dividend King
Johnson & Johnson (NYSE:JNJ) stock has proven to be a stellar performer for patient investors over the years, and that's unlikely to change.
Johnson & Johnson is a leader in the healthcare space with an exemplary mix of businesses -- while its globally renowned consumer health brands generate steady cash flows, its larger pharmaceuticals and medical devices businesses offer unending growth opportunities.
Just to give you some examples, several of Johnson & Johnson's products received regulatory approvals last quarter, including drugs for lung cancer, sclerosis, and myeloma, and a next-generation treatment procedure for cataract.
Johnson & Johnson's growth strategy has clicked so far because it has always prioritized organic growth via consistent spending on research and development (R&D), and spent remaining free cash flows on acquisitions, dividends, and share repurchases. So in 2020, it invested $12.2 billion in R&D, and paid out $10.5 billion in dividends.
In fact, Johnson & Johnson mainly lures investors with its dividends -- it's one of the best Dividend Kings to own, having increased dividends every year for 59 consecutive years. The stock yields a respectable 2.4%.
Now that Johnson & Johnson's single-shot COVID-19 vaccine could also potentially generate big sales, it's a stock you'd want to own for decades.