Dividend investing can be tricky, since income-focused investors want to find high yields while also avoiding stocks that end up cutting their quarterly payouts. There’s a balance that has to be found, and company quality is highly important to consider. That’s why you should be interested in dividend-paying healthcare stocks like Johnson & Johnson (NYSE: JNJ), Medtronic (NYSE: MDT), and Omega Healthcare Investors (NYSE: OHI).
If you have $500 in available cash (or $5,000) that isn’t needed for an emergency fund, to pay monthly bills, or to lower short-term debt, you might want to consider using it to buy and hold one of these dividend stocks (or maybe all three).
Johnson & Johnson’s big draw right now is two-fold. First, it has increased its dividend annually for more than 50 consecutive years, making it a Dividend King. Second, its 2.9% dividend yield is well above the 1.2% of the broader market and the 1.8% of the average healthcare stock. But the big story for buy-and-hold investors is really its business.