This Dividend King Just Joined an Exclusive Club -- Here's Why the Stock Is a Buy
The true testament of a stock's quality is its ability to consistently hike its dividend decade after decade. This is because stocks that steadily pay shareholders more cash with each passing year must have business models that generate the earnings growth to support the dividend increases.
The Dividend King Johnson & Johnson (NYSE: JNJ) is arguably the most established stock in the healthcare sector. In April, J&J announced a 6.6% increase in its quarterly dividend per share to $1.13 -- its 60th consecutive year of raising its dividend. This is a feat matched by only 11 of the 38 other Dividend Kings. Let's take a look at why J&J is a buy for dividend growth investors.
On April 19, J&J reported $23.4 billion in revenue for the first quarter, a 5% growth rate over the year-ago period. This came in slightly short of the average analyst forecast of $23.6 billion for the quarter. But even so, the company has exceeded the analyst revenue consensus in six out of the past 10 quarters.
Source Fool.com
