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Two Timeless Dividend Stocks: ExxonMobil and Johnson & Johnson

Eli GrantSunday, Dec 1, 2024 3:56 pm ET
4min read


In the quest for reliable and long-term growth in the stock market, investors often seek dividend stocks with a proven track record of increasing payouts. Two companies that stand out in this regard are ExxonMobil and Johnson & Johnson, both of which have consistently rewarded shareholders with rising dividends over the years. This article explores the reasons behind the enduring appeal of these two dividend giants and highlights their potential for long-term investors.

ExxonMobil, the world's largest publicly traded oil and gas company, has a rich history of dividend growth. With a 34-year track record of annual dividend increases, ExxonMobil has consistently provided shareholders with a growing income stream. The company's commitment to oil and gas, despite the growing demand for renewable energy, has not deterred investors from seeking ExxonMobil's attractive dividend.



The energy giant's dividend growth rate of 6.4% over the past 34 years has outpaced the industry's average of 3.5%. Its current yield of 3.7% is also higher than the industry's average of 2.1%. ExxonMobil's strong financial health, indicated by its low debt-to-equity ratio and high return on equity, further supports its ability to maintain and grow its dividend.

Johnson & Johnson, a global leader in the pharmaceutical, medical device, and consumer health care industries, boasts an even more impressive dividend history. The company has increased its dividend for an unprecedented 54 consecutive years, making it a member of the elite group of Dividend Kings. Johnson & Johnson's diverse product portfolio and strong brand recognition have enabled it to maintain a stable earnings base and consistently raise dividends.



The healthcare giant's dividend growth rate of 32.2% over the past decade has eclipsed the industry's average of 12.4%. Its current yield of 2.8% is also more attractive than the industry's average of 2.5%. Johnson & Johnson's robust financial health, as evidenced by its low debt-to-equity ratio and high return on assets, further assures investors of its dividend sustainability.

Both ExxonMobil and Johnson & Johnson have demonstrated the ability to navigate market cycles and maintain their dividend growth. Their strong competitive advantages, economic moats, and stable earnings bases contribute to their long-term success and dividend sustainability. Investors seeking reliable and growing income streams should consider adding these two timeless dividend stocks to their portfolios.

In conclusion, ExxonMobil and Johnson & Johnson have proven their ability to deliver consistent dividend growth over the years. Their strong financial health, competitive advantages, and stable earnings bases make them attractive choices for long-term investors. As the global economy and market trends continue to evolve, these two dividend giants remain well-positioned to reward shareholders with growing income streams for years to come.
Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.