Robinhood Markets (NASDAQ:HOOD) doesn’t mind sharing which stocks are the most popular among investors on its trading platform. The company’s “100 Most Popular” list identifies the top 100 stocks most widely held by Robinhood customers.
As you might expect, this list is loaded with growth stocks. However, Robinhood users also like some stocks that offer dividend yields of at least 2% — high enough to catch the eye of many income-oriented investors. Here are three top dividend stocks on Robinhood’s most popular list.
Pfizer (NYSE:PFE) arguably offers the strongest combination of growth and income of any stock on Robinhood’s 100 Most Popular list. The drugmaker has long been a favorite for income investors. It still is, with a dividend yield of nearly 2.9%.
However, Pfizer has also delivered impressive growth lately. The pharma stock soared 60% in 2021, fueled by the massive sales of COVID-19 vaccine Comirnaty. Pfizer expects the vaccine will rake in sales of around $29 billion this year.
The company has another COVID-19 blockbuster that just won authorization as well. COVID-19 pill Paxlovid could make sales of roughly $24 billion in 2022, according to SVB Leerink.
Pfizer doesn’t depend solely on COVID-19 for growth, though. It had more than 20 products that generated double-digit percentage year-over-year sales increases in the third quarter of 2021.
2. Johnson & Johnson
If you’re looking for the most impressive dividend pedigree among the most popular stocks on Robinhood, Johnson & Johnson (NYSE:JNJ) is it. The healthcare giant belongs to an elite group of stocks known as Dividend Kings. Only S&P 500 members with at least 50 consecutive years of dividend increases make the cut. J&J has increased its dividend for 59 years in a row.
Many Dividend Kings offer only paltry yields. Johnson & Johnson’s dividend yield, though, currently tops 2.5%.
The stock has underperformed the S&P 500 in recent years. However, it could pick up momentum once the spin-off of its consumer health unit finalizes in 2023. The transaction will leave the faster-growing pharmaceutical and medical device segments with Johnson & Johnson.
Sure, J&J will cut its dividend with the spin-off. However, the company expects the combined dividend of the two entities after the transaction will remain at least at the…
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