Not all share stocks are the same. Some will easily reduce or delay their payments at the first sign of trouble, while others will continue to increase them even during a market downturn or economic crisis.
Stock investors prefer those in the latter category. Let’s consider two stocks along these lines that are worth buying: Johnson & Johnson (NYSE: JNJ ) and Zoetis (NYSE: ZTS ). These two healthcare companies are excellent choices for income-oriented investors.
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Johnson & Johnson has many features that long-term income seekers are looking for. The company’s business, although not particularly exciting, is steady and flexible. Johnson & Johnson is a leading pharmaceutical company with a broad portfolio of approved drugs, as well as a medical device leader operating in multiple therapeutic areas.
Earnings and income are generally growing at a good clip. That’s the case even when it faces problems like patent cliffs and government drug price negotiations — issues it’s currently dealing with, but it expects its annual reported sales to grow this year and top $100 billion for the first time. Johnson & Johnson also has a rock-solid balance sheet, evidenced by its higher credit rating than the US government.
In addition, Johnson & Johnson is an innovative company. It regularly launches new products in its biopharma and medtech divisions that help it fight stiff competition, whether biosimilar or otherwise.
Johnson & Johnson is now awaiting approval for its robotic-assisted surgery system, Ottawa, which could be an important long-term growth driver. And the company’s pharmaceutical pipeline features several dozen ongoing clinical trials that will help it fill out its portfolio and achieve significant label development. This is how the company has performed well in the long run.
Finally, Johnson & Johnson is the dividend king, a company with at least 50 consecutive annual dividend increases. That’s what makes it such a substantial income storage that dividend investors don’t have to think twice about.
Zoetis is a leading animal health company. It created some buzz last year, as two of its boosters, Librela and Solencia, which treat osteoarthritis (OA) pain in dogs and cats, respectively, raised safety concerns; This issue particularly affected Librela.
(tags translation) Johnson & Johnson
