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Why Johnson & Johnson (JNJ) is a Great Dividend Stock Right Now
JNJJ&J(JNJ) ZACKS·2025-01-23 17:45

Core Viewpoint - Income investors prioritize generating consistent cash flow from liquid investments, with dividends being a significant component of long-term returns [1][2] Company Overview: Johnson & Johnson - Johnson & Johnson (JNJ) is headquartered in New Brunswick and is the largest maker of healthcare products, with a year-to-date price change of 0.45% [3] - The company currently pays a dividend of 1.24pershare,resultinginadividendyieldof3.411.24 per share, resulting in a dividend yield of 3.41%, which is higher than the Large Cap Pharmaceuticals industry's yield of 2.41% and the S&P 500's yield of 1.5% [3] Dividend Growth - JNJ's annualized dividend of 4.96 has increased by 1% from the previous year, with five increases over the last five years, averaging an annual increase of 5.54% [4] - The company's current payout ratio is 48%, indicating that it pays out 48% of its trailing 12-month earnings per share as dividends [4] Earnings Growth - The Zacks Consensus Estimate for JNJ's earnings in 2025 is $10.47 per share, reflecting an expected increase of 4.91% from the previous year [5] Investment Considerations - JNJ is viewed as a compelling investment opportunity due to its strong dividend profile and current Zacks Rank of 3 (Hold) [7] - Established firms like JNJ are often preferred for dividends, while high-growth businesses typically do not offer dividends [6][7]