A Spot of Dividends: Two Stocks for the Long Haul

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Now, a fellow can’t go entirely wrong investing in companies that actually make things, or, in this case, concoct remedies for what ails humanity. It’s a dashedly sensible approach, you see. Far better than dabbling in the more speculative ventures that leave one feeling rather like a dropped soufflé. And if those companies happen to share a bit of their profits with the chaps who’ve invested in them? Well, that’s a situation that tickles the fancy, wouldn’t you agree? It’s a bit like finding a perfectly ripe peach on a summer afternoon. So, let’s consider two such establishments – Johnson & Johnson (JNJ 0.09%) and Merck (MRK 1.54%) – firms that appear to have a knack for not just surviving, but positively thriving. They’ve been exhibiting a rather buoyant disposition of late, and while one can never be entirely certain about the whims of the market, they strike me as rather promising candidates for a spot in a long-term portfolio.

Two Robust Businesses, What!

Johnson & Johnson and Merck, you see, are rather large players in the pharmaceutical game. Merck, in particular, has made a name for itself with a rather clever concoction called Keytruda, a remedy for a most unpleasant ailment that seems to be causing quite a stir. It’s currently the best-selling cancer drug, and they’ve managed to apply it to a positively alarming number of cancers – a truly impressive feat, wouldn’t you say? And they’re not resting on their laurels, oh no. They’re diligently concocting new applications, which should keep the coffers full even when the original patent expires in 2028 – a bit like a resourceful butler always having a plan B.

They’ve also been rather clever about preparing for the inevitable loss of exclusivity. They’ve developed a subcutaneous version of Keytruda, which is easier to administer – a touch of convenience always goes down well, you see. And they’ve launched a few other promising remedies, including one for pulmonary arterial hypertension and a rather robust pneumonia vaccine. All in all, they appear well-equipped to weather any storms that may come their way.

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Much the same could be said for Johnson & Johnson. They seem remarkably adept at delivering consistent results, even when faced with patent expirations and the occasional tariff threat. It’s as if they have a secret recipe for success, a vast portfolio of pharmaceutical products and a rather extensive presence in the medical device market. Both Johnson & Johnson and Merck have a long and impressive track record, and while past performance is never a guarantee of future success, they possess all the qualities one looks for in a market leader.

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Great Dividend Stocks, Don’t You Know

Now, a fellow who’s interested in a steady income stream can’t go far wrong with dividend-paying stocks. Over the long run, they tend to outperform those that don’t share their profits. It’s a bit like having a reliable friend who always has a few shillings to spare. Companies that can sustain a dividend program for a prolonged period almost always have a solid underlying business, and that’s certainly the case with Johnson & Johnson and Merck. Merck currently offers a forward yield of 3.1%, and they’ve increased their dividend payout by a rather handsome 94% over the past decade.

But Johnson & Johnson, ah, they are in a league of their own! They are, quite literally, dividend royalty. They’re part of the esteemed Dividend Kings group – a rather exclusive club, you see. To earn a place in that clique, a company must have raised its dividend payout for at least 50 consecutive years. And Johnson & Johnson doesn’t just meet the requirement, they’ve surpassed it, with a staggering 63 straight years of dividend hikes! For a long-term investor, reinvesting those dividends will significantly boost returns over the next two decades. It’s another jolly good reason to stick with Johnson & Johnson and Merck through 2046, wouldn’t you agree?

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2026-01-23 20:33