Dividends are a great source of passive income. Meanwhile, several companies have been paying dividends for decades. This implies investors can rely on these corporations for consistent income. Speaking of reliable dividend stocks, one could consider investing in the shares of Johnson & Johnson (NYSE:JNJ) and Colgate-Palmolive (NYSE:CL). These companies are Dividend Kings (increasing dividends for over 50 consecutive years), which makes them attractive passive income stocks.
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Let’s delve into more details.
Is JNJ a Buy or Sell?
As stated above, JNJ is a solid stock for investors looking for a reliable passive income stream. Last year, JNJ raised its quarterly dividend from $1.06 a share to $1.13, implying an annual payout of $4.52. This also marked the company’s 60th consecutive dividend increase, which is encouraging.
The healthcare company benefits from its diversified portfolio of brands that support earnings growth. JNJ’s management remains confident about delivering growth in the short term despite macro concerns. Meanwhile, the company is poised to enhance shareholders’ returns through higher dividends in the long term.
JNJ stock offers a dividend yield of about 2.65%. Meanwhile, it carries a Moderate Buy consensus rating on TipRanks based on three Buy and five Hold recommendations. Analysts’ price target of $185 on JNJ stock implies 9.97% upside potential.
How Often Does Colgate Pay Dividends?
Colgate-Palmolive manufactures household and personal care products and pays dividends quarterly. Its market-leading brands in the everyday usage categories and offerings at various price points position it well to navigate macro headwinds and boost shareholders’ returns through higher dividend payments.
Colgate-Palmolive has delivered organic sales growth at or above its targeted range (3% to 5%) in the last four consecutive years. Meanwhile, this consumer product manufacturer has consistently increased its dividends for 60 years.
It pays a quarterly dividend of $0.47 per share, implying a yield of about 2.6%. Moreover, CL stock carries a Moderate Buy consensus rating on TipRanks based on three Buy and eight Hold recommendations. Analysts’ price target of $81.04 implies 13.2% upside potential in Colgate-Palmolive stock.
Bottom Line
These Dividend Kings have a solid track record of enhancing their shareholders’ returns through higher payouts. Moreover, their resilient business model and ability to defend and grow earnings indicate that these companies could continue to return a solid amount of cash to their shareholders in the coming years.
Meanwhile, investors can leverage TipRanks’ Dividend Calendar to check stocks that could soon go ex-dividend.
