Income is not enough<\/p>\n
One of the significant issues that dividend investors face isn’t directly an investment phenomenon; it is an economic one. Over time, inflation<\/a> erodes the buying power of the income you generate from dividends. This is why you should focus on companies that have the capacity to grow and, at the same time, have proven track records of rewarding shareholders with dividend growth.<\/p>\n Image source: Getty Images.<\/p>\n Healthcare<\/a> is an innovation-driven industry, where new products help support growth. Also beneficial is simple population growth. Countries moving up the socio-economic ladder are also a plus, since it means more consumers can afford more medical products.<\/p>\n Essentially, Bristol Myers Squibb, Medtronic, and Johnson & Johnson are all in a strong industry if you prefer dividend-paying stocks. However, the proof is in the pudding, as the board of directors of each company determines its dividend policy.<\/p>\n Bristol Myers Squibb: A proven survivor<\/p>\n Bristol Myers Squibb’s dividend history is the least impressive, as it has trended higher for decades but hasn’t actually been increased every single year.<\/p>\n That makes sense, however, given the nature of the pharmaceutical business<\/a>. Blockbuster drugs only have a limited time period in which they are protected by patents, so Bristol Myers Squibb is always searching for new big drug developments and dealing with the patent cliffs<\/a> that come when a blockbuster drug loses patent protection.<\/p>\n Today’s Change<\/p>\n (-0.15%) $-0.08<\/p>\n Current Price<\/p>\n $54.03<\/p>\n Key Data Points<\/p>\n Market Cap<\/p>\n $110B<\/p>\n Day’s Range<\/p>\n $53.92 – $54.35<\/p>\n 52wk Range<\/p>\n $42.52 – $63.33<\/p>\n Volume<\/p>\n 2.9M<\/p>\n Avg Vol<\/p>\n 17M<\/p>\n Gross Margin<\/p>\n 64.33%<\/p>\n Dividend Yield<\/p>\n 4.58%<\/p>\n Bristol Myers Squibb’s dividend yield is the highest on this list at 4.6%. It is currently facing down a patent cliff of several blockbuster drugs, including Eliquis, Opdivo, and Revlimid.\u00a0That has investors worried, perhaps rightly so. However, history suggests the company will survive this period, noting that it appears to have a solid pipeline of new drug candidates. And, while an 85% dividend payout ratio<\/a> is somewhat high, it still leaves some wiggle room for the dividend.<\/p>\n You can buy around nine shares of Bristol Myers Squibb with $500.<\/p>\n Medtronic: Nearly a Dividend King<\/p>\n Medtronic’s yield is 2.9%. A $500 investment will allow you to buy around five shares of this medical device maker. The fact dividend investors will likely find most interesting here is that with 48 annual dividend increases behind it, Medtronic is just two years shy of achieving Dividend King status<\/a>. That’s an incredible amount of consistency, highlighting just how reliable a dividend stock Medtronic is.<\/p>\n Today’s Change<\/p>\n (0.45%) $0.43<\/p>\n Current Price<\/p>\n $96.58<\/p>\n Key Data Points<\/p>\n Market Cap<\/p>\n $123B<\/p>\n Day’s Range<\/p>\n $96.02 – $96.63<\/p>\n 52wk Range<\/p>\n $79.38 – $106.33<\/p>\n Volume<\/p>\n 59K<\/p>\n Avg Vol<\/p>\n 6.8M<\/p>\n Gross Margin<\/p>\n 59.95%<\/p>\n Dividend Yield<\/p>\n 2.94%<\/p>\n Medtronic’s yield is actually toward the high end of its historical range. That’s because the company’s growth has been in neutral for a few years. However, a business overhaul that will refocus the company on its most profitable and fastest-growing divisions is just about complete.<\/p>\n New medical devices<\/a> are also starting to come to market, following a lull in innovation from the company. Long-term investors who don’t act soon could miss the opportunity to buy this reliable dividend stock while it is still offering a high yield.<\/p>\n Johnson & Johnson: A reliable Dividend King<\/p>\n With over six decades of dividend increases under its belt, Johnson & Johnson boasts the best dividend track record, by a wide margin. The company’s diversification helps in this regard, as it operates in both the drug and medical device niches. That said, it also has the lowest dividend yield<\/a>, at 2.5%. A $500 investment will allow you to buy roughly two shares of the stock.<\/p>\n Today’s Change<\/p>\n (-0.15%) $-0.31<\/p>\n Current Price<\/p>\n $207.25<\/p>\n Key Data Points<\/p>\n Market Cap<\/p>\n $500B<\/p>\n Day’s Range<\/p>\n $206.52 – $207.67<\/p>\n 52wk Range<\/p>\n $140.68 – $215.19<\/p>\n Volume<\/p>\n 62K<\/p>\n Avg Vol<\/p>\n 8.7M<\/p>\n Gross Margin<\/p>\n 68.27%<\/p>\n Dividend Yield<\/p>\n 2.48%<\/p>\n![\"The](\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2025\/12\/1767121389_47_.jpeg\"\/)
<\/p>\n![\"Bristol](\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2025\/12\/1767121390_887_.png\"\/)
<\/p>\n![\"Medtronic](\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2025\/12\/1767121390_426_.png\"\/)
<\/p>\n![\"Johnson](\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2025\/12\/1767121390_388_.png\"\/)
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