Understanding JNJ Payout Ratio and Dividend Safety

Johnson & Johnson's payout ratio has been steadily increasing over the years, reaching a peak of 53.4% in 2020.

This high payout ratio raises concerns about the sustainability of the company's dividend payments.

The payout ratio is calculated by dividing the total dividend payments by the company's net income, and it serves as a crucial indicator of a company's ability to maintain its dividend payments.

Johnson & Johnson's dividend yield has been relatively stable, ranging from 2.5% to 3.5% over the past few years.

For another approach, see: The Current Ratio Measures a Company's

Johnson & Johnson's dividend payout ratio is an important metric to consider when evaluating the company's dividend safety.

JNJ's dividend yield is rather good when compared to the industry average, which is at 4.20. In fact, JNJ pays more dividend than 93.78% of the companies in the same industry.

The company's dividend growth is impressive, with an average annual growth rate of 9.96% over the last 10 years. This is a nice bonus for investors who are looking for a steady stream of income.

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JNJ has a long history of paying dividends, with a reliable track record of at least 10 years. This gives investors confidence that the company will continue to pay out dividends in the future.

Here's a breakdown of JNJ's dividend payout ratio based on free cash flow over the last 10 years:

The payout ratio is fairly steady over the last 10 years and the trend is up, giving JNJ's board of directors wiggle room to raise the dividend.

Johnson & Johnson has a payout ratio of 30.40% of its income as dividend, which is a sustainable payout ratio. This is a reliable indicator of dividend safety.

JNJ has not decreased their dividend for at least 10 years, which is a good sign. This consistent dividend payment history suggests that the company is committed to rewarding its investors.

The payout ratio is a good indicator of dividend safety, but accountants manipulate net income. A better metric is free cash flow, which is used to determine the payout ratio.

Here's a breakdown of Johnson & Johnson's payout ratio based on free cash flow over the last 10 years:

The ratio is fairly steady over the last 10 years and the trend is up, giving wiggle room for Johnson & Johnson's board of directors to raise the dividend.

Johnson & Johnson has a decent dividend yield, paying more than 93.78% of companies in its industry. Its dividend yield is also higher than the S&P500 average.

Johnson & Johnson's dividend growth is quite impressive, averaging 9.96% per year over the last decade. This is a nice bonus for investors.

The company's payout ratio is a more reliable metric than just looking at net income, and it's based on free cash flow. Over the last 10 years, Johnson & Johnson's payout ratio based on free cash flow has been fairly steady and trending up.

Here's a breakdown of Johnson & Johnson's dividend growth over the last decade:

The slight decrease in dividend growth from 6.3% to 5.4% over the last year isn't a great sign, but Johnson & Johnson's dividend safety still looks good.

Johnson & Johnson is a massive company with a market value of $347 billion, based out of New Brunswick, New Jersey. It's a $76 billion business, with a staggering $571,000 in sales per employee.

The company operates in the consumer sector and has three main segments: Pharmaceuticals, Medical Devices, and Consumer Health Products. It has an impressive reach with over 250 subsidiaries.

Johnson & Johnson's size and financial stability have earned it a solid credit rating of AAA from the S&P. This allows the company to issue cheap debt and pay dividends.

Here are some key statistics about Johnson & Johnson's dividend:

Johnson & Johnson has a impressive dividend history, with a 85% increase over the last 10 years, climbing from $1.795 per share to $3.32. This growth is a testament to the company's commitment to rewarding its investors.

The compound annual growth rate of 6.3% over 10 years is a strong indicator of the company's ability to sustain its dividend payments. However, the slight decrease in dividend growth over the last year, at 5.4%, is a slight concern.

Johnson & Johnson's dividend yield is a significant advantage, with a 7 out of 10 rating from ChartMill. This is due to its relatively high yield compared to the industry average of 4.20, and even higher than the S&P500 average of 2.38.

Here are some key statistics that highlight Johnson & Johnson's dividend history:

The company's dividend safety is also a plus, with a steady payout ratio based on free cash flow over the last 10 years, and a last reported year payout ratio of 50.3%. This gives the company's board of directors some wiggle room to raise the dividend if needed.