This Is 1 of the Healthiest High-Yielding Dividend Stocks You'll Find

Core Insights - Johnson & Johnson is recognized as a Dividend King, having increased its dividend payment for 62 consecutive years, with a current yield of approximately 3.4%, significantly higher than the S&P 500's yield of 1.2% [1][2] Financial Profile - The company boasts an AAA bond rating, indicating a strong capacity to meet financial obligations even during economic downturns [3] - With a market cap exceeding 355 billion, Johnson & Johnson ended the previous year with 12 billion in net debt, $25 billion in cash, and$37 billion in total debt [4] - The company generated around $20 billion in free cash flow last year, which comfortably covered its dividend outlay of$11.8 billion, despite investing 17.2 billion in R&D [5] Growth Prospects - Johnson & Johnson anticipates operational sales growth of 2.5% to 3.5% this year, projecting revenues to exceed 90 billion, along with adjusted earnings per share growth of 5.2% to 7.2% [6] - The company's recent acquisitions, while initially impacting earnings, are expected to enhance future growth, particularly in the cardiovascular intervention segment and through a robust pipeline from Intra-Cellular [7][8] - Heavy investments in R&D are expected to yield significant milestones this year, contributing to long-term value creation for shareholders [9] Long-term Outlook - The company is positioned to achieve annual operational sales growth of 5% to 7% through 2030 and beyond, which should drive higher adjusted earnings per share and free cash flow growth rates [10] - Johnson & Johnson's strong financial health and growth prospects suggest that it will continue to increase its dividend at a healthy rate, making it a core holding for income-seeking investors [12]