JNJ Beats O as Top Retirement Holding for Long-Term Investors
When it comes to retirement income, two stalwarts stand out: Realty Income (O) and Johnson & Johnson (JNJ). While Realty Income pays monthly dividends, offering a relatively high yield of 5.26%, Johnson & Johnson's quarterly payouts may be lower at 1.97%, but the company boasts an impressive 64-year streak of dividend increases.
JNJ's diversified portfolio, including pharma and MedTech engines like DARZALEX and TREMFYA, drives growth and total return. In contrast, Realty Income derives 65.7% of its annualized base rent from non-investment-grade tenants, exposing it to interest-rate risk.
A retiree with a horizon longer than two years is better off investing in JNJ, as the company's AAA-caliber balance sheet and superior total return make it a more reliable compounder of retirement wealth. For those drawing down their portfolio who need a high, predictable monthly check, Realty Income might be the better choice.