Investors debate what makes a good dividend stock: dividend yield or growth track record. Data shows companies increasing dividends delivered a 10.2% annual return, outperforming those with no change at 6.8%. Higher dividend payout ratios often lead to better performance.

Healthcare stocks like Johnson & Johnson offer a 2.2% dividend yield, nearly double the S&P 500’s. With a 63-year streak of dividend increases, Johnson & Johnson has a AAA bond rating and generated $20 billion in free cash flow last year.

Medtronic, another healthcare stock, has a 2.8% dividend yield and a 48-year streak of dividend increases. Generating $5.2 billion in free cash flow last year, Medtronic invests in R&D and strategic acquisitions to support its growth and dividend payments.

Both Johnson & Johnson and Medtronic are strong dividend stock options, offering high yields and consistent growth. Consider these companies for your income portfolio.

Read more at Yahoo Finance: What is Considered a Good Stock Dividend? 2 Healthcare Stocks That Fit the Bill.