Johnson & Johnson and Merck: Two Dividend Stocks with Long-Term Potential

Johnson & Johnson and Merck are two outstanding dividend stocks that have demonstrated their ability to overcome challenges and deliver long-term returns. Johnson & Johnson has a rare streak of consecutive annual dividend increases, with 64 years under its belt. The company's strong financial results, including a 6.6% year-over-year increase in revenue to $25.3 billion, and 4.7% year-over-year growth in adjusted earnings per share to $2.90, have contributed to its success. Its diversified product lineup across pharmaceuticals and medical devices has also helped the company perform well over the long run.

Merk is facing increased competition for its biggest growth driver, Keytruda, but it has formulated a plan to overcome the patent cliff. The company has earned approval for a subcutaneous formulation of the medicine that will help retain patients beyond the original formulation's patent cliff. Merck's pipeline features several exciting candidates, including a personalized mRNA-based cancer vaccine developed with Moderna.

Both companies have demonstrated their ability to adapt and overcome challenges, making them excellent long-term picks for investors. Johnson & Johnson's dividend program is exceptional, and the company has increased its payouts by 64 consecutive years. Merck's dividend growth over the past decade has been impressive, increasing by 93.79%.