Johnson & Johnson's Dividend Analysis
In This Article:
Understanding the Sustainability of JNJ's Dividend Payments
Johnson & Johnson (NYSE:JNJ) recently announced a dividend of $1.19 per share, payable on 2023-12-05, with the ex-dividend date set for 2023-11-20. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's look into Johnson & Johnson's dividend performance and assess its sustainability.
What Does Johnson & Johnson Do?
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Johnson & Johnson is the world's largest and most diverse healthcare firm. Three divisions make up the firm: pharmaceutical, medical devices and diagnostics, and consumer. The drug and device groups represent close to 80% of sales and drive the majority of cash flows for the firm. The drug division focuses on the following therapeutic areas: immunology, oncology, neurology, pulmonary, cardiology, and metabolic diseases. The device segment focuses on orthopedics, surgery tools, vision care, and a few smaller areas. The last segment of consumer focuses on baby care, beauty, oral care, over-the-counter drugs, and women's health. The consumer group is being divested in 2023 under the new name Kenvue. Geographically, just over half of total revenue is generated in the United States.
A Glimpse at Johnson & Johnson's Dividend History
Johnson & Johnson has maintained a consistent dividend payment record since 1963, with dividends currently distributed on a quarterly basis. The company has increased its dividend each year since 1963, earning it the prestigious title of a dividend king, a recognition given to companies that have increased their dividend each year for at least the past 60 years. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Johnson & Johnson's Dividend Yield and Growth
As of today, Johnson & Johnson currently has a 12-month trailing dividend yield of 3.10% and a 12-month forward dividend yield of 3.18%, indicating an expectation of increased dividend payments over the next 12 months. Over the past three years, Johnson & Johnson's annual dividend growth rate was 5.90%, which increased to 6.00% per year over a five-year horizon. Over the past decade, the annual dividends per share growth rate stands at 6.30%. Based on Johnson & Johnson's dividend yield and five-year growth rate, the 5-year yield on cost of Johnson & Johnson stock as of today is approximately 4.15%.