Thursday, April 26, 2012

Johnson & Johnson Increases Dividend for 50th Consecutive Year!

I am very pleased with recent news Johnson & Johnson (JNJ) has raised its dividend for the 50th straight year.  50 consecutive years is a really really long time, the streak started decades before I was born.  JNJ is the second company in my portfolio along with KO to reach the 50 year mark this year.  The latest increase to $.61/quarter clocks in at 7.01% which is higher than I was expecting.  April has been a fantastic month for dividend growth investing.

Including the latest dividend increase JNJ has a payout ratio of 66.8%, which is kind of high.  It is worth noting that in the Q4 2011 JNJ had extraordinary items reducing net earnings including litigation settlement and product liability expenses.  Excluding one time non-recurring items, JNJ now has a payout ratio of about 48.8%.  This means the dividend is more sustainable than it looks at first glance.


  1. "Do you know the only thing that gives me pleasure? It's to see my dividends coming in."

    John D. Rockefeller

    1. That is an awesome quote, thanks for sharing. I will have to remember that one.