2 Top Dividend Stocks to Buy in December

As the year comes to a close, investors are looking for reliable income and long-term growth opportunities. Two top dividend stocks to consider in December are Microsoft Corporation (MSFT) and Johnson & Johnson (JNJ). Both companies have a strong track record of dividend growth and offer attractive yields, making them excellent choices for income-oriented investors.

Microsoft Corporation (MSFT) is a dominant player in software and cloud services, with a current yield of 1.1%. The company has increased its dividend for 17 consecutive years, reflecting its strong financial performance and earnings growth. MSFT's earnings per share (EPS) have grown at a compound annual growth rate (CAGR) of 12.1% over the past five years, driven by its Intelligent Cloud segment and productivity services. The company's robust cash flow generation, with free cash flow (FCF) of $61.3 billion in the last twelve months, supports its dividend payout.

Johnson & Johnson (JNJ) is a diversified healthcare company with a current yield of 2.4%. The company has increased its dividend for 59 consecutive years, demonstrating its commitment to returning value to shareholders. JNJ's EPS have grown at a CAGR of 6.1% over the past five years, driven by its pharmaceutical and consumer health segments. The company's operating cash flow (OCF) of $25.1 billion in the last twelve months ensures the sustainability of its dividend.

Both MSFT and JNJ have strong balance sheets, with MSFT having $78.4 billion in cash and JNJ with $20.3 billion. Their consistent earnings growth and dividend increases make them attractive investments for income-oriented investors.

In conclusion, Microsoft Corporation (MSFT) and Johnson & Johnson (JNJ) are two top dividend stocks to consider in December. Both companies have a strong track record of dividend growth, robust business models, and competitive advantages that enable them to sustain and grow dividends. Their attractive yields and long-term growth potential make them excellent choices for income-oriented investors.