These Small-Cap Stocks Pay Juicier Dividends Than Many Big Names
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 05 2024
0mins
Source: MarketWatch
- Large-cap Dividend Payers: Johnson & Johnson and PepsiCo are popular among income investors.
- Diversifying Dividend Investments: There are other dividend opportunities beyond large-cap stocks.
- Small-Cap Dividends: While less common, some small-cap stocks offer attractive valuations, good yields, and a history of increasing dividends.
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Analyst Views on JNJ
Wall Street analysts forecast JNJ stock price to fall
20 Analyst Rating
13 Buy
7 Hold
0 Sell
Moderate Buy
Current: 223.510
Low
190.00
Averages
218.50
High
240.00
Current: 223.510
Low
190.00
Averages
218.50
High
240.00
About JNJ
Johnson & Johnson and its subsidiaries are engaged in the research and development, manufacture, and sale of a range of products in the healthcare field. The Company’s segments include Innovative Medicine and MedTech. The Innovative Medicine segment is focused on various therapeutic areas, including immunology, infectious diseases, neuroscience, oncology, pulmonary hypertension, cardiovascular and metabolism. Its products include REMICADE (infliximab), SIMPONI (golimumab), SIMPONI ARIA (golimumab), STELARA (ustekinumab), TREMFYA (guselkumab), EDURANT (rilpivirine), and INVEGA SUSTENNA/XEPLION (paliperidone palmitate). The MedTech segment includes a portfolio of products used in cardiovascular, orthopedics, surgery, and vision categories. The Cardiovascular portfolio includes electrophysiology products to treat heart rhythm disorders and circulatory restoration products (Shockwave) for the treatment of calcified coronary artery disease (CAD) and peripheral artery disease (PAD).
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Stock Acquisition: Jim Cramer's Charitable Trust purchased 50 shares of Johnson & Johnson at approximately $221.43, increasing its total holdings to 340 shares and raising its weighting from 1.62% to 1.9%, indicating confidence in the company.
- Market Pressure: Healthcare and pharmaceutical stocks faced pressure on Monday due to surging oil prices and rising interest rates, with Johnson & Johnson's stock down about 3% since early May, reflecting the sector's unpopularity in the AI-driven bull market.
- New Drug Outlook: Johnson & Johnson's strong multiyear growth outlook is driven by several new drugs, including the recently approved oral IL-23 inhibitor Icoytde, which is expected to positively impact moderate to severe plaque psoriasis patients.
- Oncology Updates: At the recent American Society of Clinical Oncology meeting, Johnson & Johnson provided encouraging updates on its oncology portfolio, with analysts suggesting that Rybrevant and Erleada could become standard care in the studied populations, further solidifying the company's market position.
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- Healthcare Sector Potential: Cramer believes Johnson & Johnson may present a more appealing investment option due to its drug pipeline and growing medical technology business, although he remains positive on Eli Lilly as well.
- Consumer Goods Stability: Cramer favors Kimberly-Clark for its strong brand portfolio and attractive dividend yield, with the planned merger with Kenvue expected to further enhance its market position.
- Restaurant Sector Rebound: Cramer points to McDonald's and Yum! Brands, arguing that the tech sector's popularity has undervalued these stocks, particularly with Yum! Brands considering the sale of Pizza Hut, which sweetens its investment case.
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- Healthcare Sector Outlook: Cramer believes Johnson & Johnson's drug pipeline and growing medical technology business present significant growth potential, suggesting it may offer a more attractive investment opportunity than Eli Lilly, while advising investors to buy slowly due to market uncertainties.
- Consumer Goods and Restaurant Sector: Cramer highlights Kimberly-Clark's household brand portfolio and appealing dividend yield, along with the investment value of McDonald's and Yum! Brands, particularly with Yum! potentially selling Pizza Hut, which enhances its investment appeal.
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- Strong Financial Performance: AbbVie's first-quarter earnings exceeded expectations, showcasing robust revenue and profit growth, which indicates the company's strong profitability in a competitive market and is likely to continue attracting investor interest.
- Skyrizi's Market Position Secure: Despite Johnson & Johnson's launch of Icotyde as a competitor, Skyrizi demonstrated a significant efficacy with approximately 70% of patients achieving PASI 90 in clinical trials, far surpassing Icotyde's 50%, thereby solidifying Skyrizi's leadership in psoriasis treatment.
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- Consistent Dividend Growth: AbbVie offers a 3.2% dividend yield and has increased its payouts for 54 consecutive years, earning the title of 'Dividend King', which not only boosts investor confidence but also provides a foundation for the company's future financial stability.
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- Industry Impact: Nvidia, as the world's largest chipmaker, drives technological advancements across the industry through its pivotal role in AI model and service development, while Meta and Amazon demonstrate strong AI application capabilities in communication services and consumer goods, enhancing customer experience and operational efficiency.
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- Transparent Research Methodology: The index utilizes publicly available data such as earnings call transcripts, job openings, and patent applications, providing an objective comparison tool that allows companies to assess their AI strategies against peers, thereby facilitating more effective decision-making.
- Significant Industry Disparities: While tech companies excel, the study highlights that many firms have considerable room for improvement in AI literacy and implementation, underscoring the necessity for boards and executives to better understand and manage AI-related risks and strategic investments.
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See More
Jim Cramer Increases Stake in Johnson & Johnson
- Stock Acquisition: Jim Cramer's Charitable Trust purchased 50 shares of Johnson & Johnson at approximately $221.43, increasing its total holdings to 340 shares and raising its weighting from 1.62% to 1.9%, indicating confidence in the company.
- Market Pressure: Healthcare and pharmaceutical stocks faced pressure on Monday due to surging oil prices and rising interest rates, with Johnson & Johnson's stock down about 3% since early May, reflecting the sector's unpopularity in the AI-driven bull market.
- New Drug Outlook: Johnson & Johnson's strong multiyear growth outlook is driven by several new drugs, including the recently approved oral IL-23 inhibitor Icoytde, which is expected to positively impact moderate to severe plaque psoriasis patients.
- Oncology Updates: At the recent American Society of Clinical Oncology meeting, Johnson & Johnson provided encouraging updates on its oncology portfolio, with analysts suggesting that Rybrevant and Erleada could become standard care in the studied populations, further solidifying the company's market position.
See More
Jim Cramer Highlights Undervalued Stocks Amid Tech Fatigue
- Investment Opportunity Identification: Jim Cramer highlights that as tech stocks lose momentum, investors should focus on undervalued stocks, particularly JPMorgan Chase, which is trading at a forward P/E of about 13, down from 15 at the start of the year, indicating its attractiveness.
- Healthcare Sector Potential: Cramer believes Johnson & Johnson may present a more appealing investment option due to its drug pipeline and growing medical technology business, although he remains positive on Eli Lilly as well.
- Consumer Goods Stability: Cramer favors Kimberly-Clark for its strong brand portfolio and attractive dividend yield, with the planned merger with Kenvue expected to further enhance its market position.
- Restaurant Sector Rebound: Cramer points to McDonald's and Yum! Brands, arguing that the tech sector's popularity has undervalued these stocks, particularly with Yum! Brands considering the sale of Pizza Hut, which sweetens its investment case.
See More
Investors Should Consider Out-of-Favor Sectors
- Investment Opportunity Identification: CNBC's Jim Cramer suggests that investors should consider out-of-favor sectors, particularly as tech stocks may retreat, highlighting potential beneficiaries like JPMorgan, Johnson & Johnson, Kimberly-Clark, McDonald's, Yum! Brands, and Kraft Heinz.
- Financial Sector Potential: Cramer points out that JPMorgan's forward P/E ratio is around 13 times, down from 15 at the beginning of the year, and despite a 7% decline year-to-date, its value as a quality franchise remains attractive, indicating investment opportunities amid economic slowdown concerns.
- Healthcare Sector Outlook: Cramer believes Johnson & Johnson's drug pipeline and growing medical technology business present significant growth potential, suggesting it may offer a more attractive investment opportunity than Eli Lilly, while advising investors to buy slowly due to market uncertainties.
- Consumer Goods and Restaurant Sector: Cramer highlights Kimberly-Clark's household brand portfolio and appealing dividend yield, along with the investment value of McDonald's and Yum! Brands, particularly with Yum! potentially selling Pizza Hut, which enhances its investment appeal.
See More
AbbVie's Strong Earnings and Skyrizi's Promising Outlook Amid Competition
- Strong Financial Performance: AbbVie's first-quarter earnings exceeded expectations, showcasing robust revenue and profit growth, which indicates the company's strong profitability in a competitive market and is likely to continue attracting investor interest.
- Skyrizi's Market Position Secure: Despite Johnson & Johnson's launch of Icotyde as a competitor, Skyrizi demonstrated a significant efficacy with approximately 70% of patients achieving PASI 90 in clinical trials, far surpassing Icotyde's 50%, thereby solidifying Skyrizi's leadership in psoriasis treatment.
- Sales Forecast Upgrade: AbbVie raised its 2027 sales forecast for Skyrizi and Rinvoq from $27 billion to $31 billion, reflecting strong market demand and confidence in the future growth potential of these two immunosuppressants.
- Consistent Dividend Growth: AbbVie offers a 3.2% dividend yield and has increased its payouts for 54 consecutive years, earning the title of 'Dividend King', which not only boosts investor confidence but also provides a foundation for the company's future financial stability.
See More
Top Companies in AI Adoption Revealed
- AI Adoption Scores: A new study from the AI-Driven Enterprise Institute reveals that Nvidia, Meta, and Schlumberger lead S&P 500 companies with perfect scores of 100, showcasing their exceptional performance in AI technology implementation and solidifying their market leadership in their respective industries.
- Industry Impact: Nvidia, as the world's largest chipmaker, drives technological advancements across the industry through its pivotal role in AI model and service development, while Meta and Amazon demonstrate strong AI application capabilities in communication services and consumer goods, enhancing customer experience and operational efficiency.
- Data-Driven Assessment: The study employs publicly available data such as earnings calls, job openings, and patent applications to objectively evaluate executives' understanding and prioritization of AI, aiding companies in better risk management and investment decisions to enhance overall competitiveness.
- Room for Improvement: Despite the strong performance of leading companies, AIDE's CEO Paul Cheek emphasizes that there is significant room for improvement in AI literacy among board members and executives, highlighting the importance of understanding AI's role in creating value for informed strategic investments in the future.
See More
AI Adoption Among S&P 500 Companies Revealed by New Research
- AI Adoption Scores: The new index from the AI-Driven Enterprise Institute reveals that Nvidia, Amazon, Meta, and Schlumberger lead S&P 500 companies with perfect scores of 100, indicating their forefront position in AI application and implementation, which may further solidify their market dominance.
- Transparent Research Methodology: The index utilizes publicly available data such as earnings call transcripts, job openings, and patent applications, providing an objective comparison tool that allows companies to assess their AI strategies against peers, thereby facilitating more effective decision-making.
- Significant Industry Disparities: While tech companies excel, the study highlights that many firms have considerable room for improvement in AI literacy and implementation, underscoring the necessity for boards and executives to better understand and manage AI-related risks and strategic investments.
- Top 20 Companies: The top 20 companies based on orientation and implementation scores include Nvidia, Schlumberger, Amazon, and Meta, showcasing their leadership positions within their respective sectors, which may attract increased investor interest in their future growth potential.
See More
