Are you concerned about inflation eating into your assets? Maybe you’re worried that the Federal Reserve’s strategy to battle inflation with higher interest rates will lead us into a recession.
At times like these, it may appear that there are no good alternatives to invest in, but this is not the case. Many well-established businesses have thrived during recessionary periods that make present circumstances seem like a stroll in the park.
These two top healthcare firms have a long track record of making dividend payments and increasing their payouts at least once a year. Investors who purchase them now can anticipate steady increases in dividends paid into and throughout their retirement years.
The stock of Abbott Laboratories (ABT 2.72%), for example, has dropped more than 20% from its peak in January. The company’s COVID-19 tests’ rising sales drove the stock up throughout 2021, but now demand for those tests has decreased, causing the stock to fall. At current share prices, its dividend yield is 1.7 percent, but that yield might rise significantly in the future.
Abbott Laboratories is a global health care company that has been in business since 1891. The company offers a wide range of diagnostic tests and services, as well as medical devices such as continuous blood glucose monitors, which are becoming increasingly popular among persons with diabetes and the doctors who treat them.
The Freestyle Libre 3 is manufactured by Abbott, the latest FDA-approved CGM available. The G7 from Dexcom has yet to be approved by the FDA, allowing Abbott’s device to establish a commanding lead in the United States market.
Since 1924, Abbott Laboratories has paid an annual dividend every year. It’s been 50 years since the firm went more than a year without increasing its payout at least once. Given the business’s strong dedication to its investors and its capacity to increase payouts, waiting for this firm to grow might provide you with a lot of additional cash in your bank account.
Johnson & Johnson
Another well-diversified healthcare firm with a long history of dividend payments is Johnson & Johnson (JNJ -1.46%). For the 60th year in a row, the firm increased its payout this April.
J&J’s wide range of healthcare services has helped the company to significantly expand its bottom line, but not quickly enough for everyone. This is why it will separate its consumer goods business into a new firm in 2023. The remaining business will be able to concentrate on the fast-growing markets for new medicines and innovative medical devices.
J&J stock has a 2.5 percent yield at current prices, and investors may anticipate the combined dividends following the spinoff in 2019 to be equal to or greater than that value. Over the previous year, J&J spent just 57% of its free cash flow from operations on dividend payments. This implies that the firm can afford to raise its payout while still investing in its future.
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