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Zacks Investment Ideas feature highlights: Johnson & Johnson, Coca-Cola and Exxon Mobil

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For Immediate Release

Chicago, IL – September 14, 2026 – Today, Zacks Investment Ideas features Johnson & Johnson (JNJ - Free Report) , Coca-Cola (KO - Free Report) and Exxon Mobil (XOM - Free Report)

Top 3 Dividend Aristocrats to Own Near All-Time Highs

When considering dividend-paying stocks, those with a history of increasing payouts are prime candidates, reflecting their commitment to increasingly rewarding shareholders.

And when it comes to a consistent history of increased payouts, look no further than the Dividend Aristocrats. Several members of the club, including Johnson & Johnson, Coca-Cola  and Exxon Mobil, are trading near all-time highs, reflecting bullish momentum driven by strong results or favorable operating conditions.

Johnson & Johnson Lifts Outlook

Johnson & Johnson’s biggest strength is its diversified business model, with more than 275 subsidiaries that provide a strong shield against economic fluctuations.

Strong operational performance led the company to increase both its current fiscal year sales and adjusted EPS guidance in its latest quarterly release, with JNJ now on track to meet its 2026 target of more than $100 billion in annual revenue for the first time in its history.

JNJ is not only a Dividend Aristocrat but also a Dividend King, a title held by companies with at least 50 years of consecutive annual dividend increases, owing to its ability to consistently reward shareholders throughout its long-standing history. Shares yield 2.0% annually, nearly double the current yield of the S&P 500.

JNJ is an extremely defensive stock given its ability to generate sales no matter the current backdrop, making it a top-tier option for those seeking a layer of defense paired with predictable dividend payouts. It has also been an excellent earnings performer, posting a double-beat relative to our consensus expectations in nine consecutive quarters.

Coca-Cola Capitalizes on Shifting Consumer Preferences

Coca-Cola’s brand equity, marketing, research, and innovation support a market share of more than 40% in the non-alcoholic beverage industry, with a product portfolio across a broad range of consumer needs and drinking occasions.

Coca-Cola’s latest results reflected nice strength, with Q2 sales climbing 7% YoY to $13.4 billion and EPS jumping 11% to $0.97. Importantly, the company has capitalized well on consumers’ shift and wants toward less-sugary options, reflected in 16% YoY volume growth in Coca-Cola Zero Sugar in the above-mentioned period.   

Like JNJ, Coca-Cola is also a Dividend King, known for its consistent, increasing dividend payouts throughout time. Shares currently yield a solid 2.4% annually, with it also sporting a 5% five-year annualized dividend growth rate.

The earnings growth outlook for KO remains solid, with Zacks Consensus estimates suggesting 9.7% earnings growth in 2026 and another 7% in FY27. The growth here is quite strong given its overall mature nature, showcasing its ability to generate higher profits on the back of capitalizing on shifting preferences. 

ExxonMobil Benefits Greatly From Higher Oil

ExxonMobil shares have delivered a strong performance in 2026 on the back of higher oil prices stemming from geopolitical concerns. Higher oil prices boost cash generation, which is why it remains a favorite among many income-focused investors.

Free cash flow of $17.5 billion in its latest quarter grew by a triple-digit 600% YoY, reflecting the highly favorable operating environment it’s been sitting in for the bulk of 2026. Shares currently yield 2.5% annually, with XOM carrying a 3.9% five-year annualized dividend growth rate.

That said, oil prices are undoubtedly volatile as we’ve learned this decade, but improved operational efficiencies mean it stays heavily cash-generative even in lower-price environments. Shares currently yield 2.5% annually, and XOM also provides strong shareholder returns through share buybacks.

Bottom Line

Consistently growing dividend payouts reflect rock-solid business fundamentals, with companies like these all showing their ability to return value to shareholders across different economic environments. Their strong cash-generating abilities also provide a higher level of defense during wider market volatility, offering another advantage for investors seeking a level of stability whenever sentiment shifts.

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.

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