Why Johnson & Johnson, Invitation Homes And Extra Space Storage Are Winners For Passive Income
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Companies with a long history of paying dividends and consistently hiking them remain appealing to income-focused investors. Johnson & Johnson, Invitation Homes and Extra Space Storage have rewarded shareholders for decades and recently announced dividend increases. These companies currently offer dividend yields over 3%.
Johnson & Johnson (NYSE:JNJ) is the world's largest and most diverse health care firm. It researches, develops, manufactures and sells various products, operating through two divisions: pharmaceuticals and medical devices. These now represent all of the company's sales following the divestment of the consumer business, Kenvue, in 2023.
Johnson & Johnson has consistently raised its dividends for the past 62 years. On April 16, the company announced its most recent dividend hike, increasing the quarterly dividend by 4.2% to $1.24 per share or $4.96 annually. Currently, the dividend yield on the stock stands at 3.20%.
Johnson & Johnson’s annual revenue (as of Sept. 30) is $87.7 billion. According to the company's most recent earnings announcement on Oct. 15, it posted Q3 2024 revenues of $22.47 billion and EPS of $2.42. Both figures came in above consensus estimates.
Check out this article by Benzinga, which evaluates Johnson & Johnson against competitors in pharmaceutical industry.
Invitation Homes
Invitation Homes (NYSE:INVH) is the nation's premier single-family home leasing and management company. It meets changing lifestyle demands by providing access to high-quality, updated homes with valued features such as proximity to jobs and access to good schools.
The company has increased its dividends every year since 2017. On Dec. 8, 2023, its board of directors announced its most recent dividend hike, increasing the quarterly dividend by 7.7% to $0.28 per share or $1.12 annually. Currently, the dividend yield on the stock is 3.31%.
Invitation Homes’ annual revenue (as of Sept. 30) is $2.6 billion. As per the company's Q3 2024 earnings announcement on Oct. 30, it posted revenues of $660.32 million and an EPS of $0.47. Both figures beat consensus estimates.
Check out this article by Benzinga, which highlights 12 analysts' insights on Invitation Homes stock.
Extra Space Storage
Extra Space Storage (NYSE:EXR) is a self-administered and self-managed REIT that owns, operates and manages almost 3,700 self-storage properties in 42 states, with over 280 million net rentable square feet of storage space. Of these properties, approximately one-half of these properties are wholly owned, while some facilities are owned through joint ventures and others are owned by third parties and managed by Extra Space Storage in exchange for a management fee.
Extra Space Storage has consistently raised its dividends yearly for the last 14 years. According to its most recent dividend hike announcement on Nov. 15, 2023, its board of directors raised the quarterly dividend to $1.62 per share, equating to $6.48 annually. Currently, the dividend yield on the stock stands at 3.92%.
The company’s annual revenue (as of Sept. 30) is $3.2 billion. Extra Space Storage's most recent earnings release on Oct. 29 generated Q3 2024 revenues of $710.87 million, compared to the consensus estimate of $821.37 million and an EPS of $2.07, compared to the consensus of $2.03.
Johnson & Johnson, Invitation Homes and Extra Space Storage are good choices for investors seeking reliable passive income. Their dividend yields over 3% and long history of consistent hikes make them attractive to income-focused investors.
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