24/7 Wall St. Insights

• Stocks that consistently raise their dividends offer investors huge total return potential.
• Dividend stocks will become more popular as interest rates decline.
• Grab this free report today: Access 2 legendary, high-yield dividend stocks Wall Street loves.

Dividend stocks are a favorite among investors for good reason. They provide a steady income stream and offer a promising avenue for total return. Total return, a comprehensive measure of investment performance, encompasses interest, capital gains, dividends, and distributions realized over time.

When selecting stocks for their portfolios, one critical aspect for growth and income investors is the safety and security of a company’s dividend and the prospect of the dividend being increased regularly. We decided to screen top blue-chip companies, looking for those that will be increasing their dividends not only this year but beyond.

Many of the companies we examined are proud members of the Dividend Aristocrats and the Dividend Kings, both of which we have covered for years here at 24/7 Wall St. The Dividend Aristocrats have raised their dividends for 25 consecutive years and are members of the S&P, while the Dividend Kings for 50 years or more. Dividend investors should grab this free report today.

Why do we cover dividend stocks

Dividend stocks provide investors with reliable streams of passive income. Passive income is characterized by its ability to generate revenue without requiring the earner’s continuous active effort, making it a desirable financial strategy for those seeking to diversify their income streams or achieve financial independence.

Drug giant Johnson & Johnson has a long history

Founded in 1886 by the Johnson brothers, Robert, James and Edward, the company’s earliest products consisted of selling ready-to-use sterile surgical dressings and baby products. The first product for babies was Johnson’s baby powder which was introduced in 1894. The baby care products are still associated with the company today. 

Today Johnson & Johnson is one of the leading health care companies in the world

With a diverse product base and a familiar and solid brand, Johnson & Johnson (NYSE: JNJ) is among the most conservative big pharmaceutical companies and currently pays a 3.07% dividend. It is one of the top market-cap stocks in the healthcare sector and raised the dividend for shareholders last year for the 61st consecutive year.

It spun off its consumer health products division in 2023

On May 8 of 2023, Kenvue Inc. (NYSE: KVUE) went public as a stand-alone company after a spin-off from Johnson & Johnson. Kenvue is the world’s largest pure-play consumer health company by revenue. At the closing of the IPO, Johnson & Johnson owned approximately 89.6% of the total outstanding shares of Kenvue common stock. In May of this year, the company reported that it was selling the remaining 9.5% of the stock it still owned after selling the majority of its holdings over the last year. 

Johnson & Johnson is a Dividend Aristocrat and a Dividend King

The Dividend Aristocrats have raised their dividend each year for at least 25 years.

• Companies must be worth at least $3 billion each quarterly rebalancing.
• Average daily volume of at least $5 million transactions for every trailing three-month period at every quarterly rebalancing date.
• Be a member of the S&P 500.

The Dividend Kings are 53 companies that have not just raised their dividends but have done so for 50 consecutive years or more, demonstrating a level of reliability and trust that investors can count on. 

We predict that its dividend payout will increase in 2025

In April, the company raised the dividend for shareholders to $1.24 from $1.19, a 4.2% increase. This makes the new annualized dividend $4.96 per share versus the previous $4.76 per share. It also marked the 62nd consecutive year investors saw an increase in the dividend.

The next ex-dividend date for the stock is August 27. Investors who own the shares prior to that date will receive the dividend of $1.24 on September 10. 

It’s a very solid bet that the company will raise the dividend again in April 2025 by 4% or more. Thus, the valuable Dividend Aristocrat and Dividend Kings status will be maintained for yet another year.

Six Dividend Kings That Offer Investors a Passive Income Home Run

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