The advice of Johnson & Johnson (NYSE: JNJ) announced that the dividend on June 10 will be increased to $ 1.30, which will be 4.8% higher than the payment last year from $ 1.24, which covers the same period. This will lead dividend yield to an attractive 3.2%, providing a pleasant impetus to the return on shareholders.
We have found 21 American shares that are predicted to pay a dividend yield of over 6% next year. See the full list free of charge.
If payments are not sustainable, high yields will not matter so much in a few years. Previously, a message Johnson and Johnson was conveniently covered by both cash flow and profit. This means that much of its revenue is saved to grow business.
EPS is expected to expand by 4.7%next year. If the dividend continues in the latest trends, we appreciate that the payment ratio will be 56%, which is within the range, which makes us comfortable with the resistance of the dividend.
See our most new analysis for Johnson & Johnson
The company has an extended history of paying stable dividends. The dividend went from an annual amount of $ 2.80 in 2015 to the latest total annual payment of $ 4.96. This means that during this time it increases its distributions by 5.9% per year. Dividends have grown at a reasonable rate during this period and without great redundancies in time, we believe it is an attractive combination as it provides a pleasant impetus for the return of shareholders.
The investors who have held shares in the company in the last few years will be pleased with the dividend income they have received. We are encouraged to see that Johnson & Johnson increased the profit per share by 6.8% annually in the last five years. The company pays a reasonable amount of shareholders’ profits and increases profits with a decent course, so we think this can be a decent dividend.
Overall, we think this can be an attractive income shares and it becomes better by paying a higher dividend this year. Profit easily covers distribution and the company generates a lot of money. In general, this checks many of the boxes we look for when choosing a stock of income.
In general, investors tend to prefer companies with a permanent, stable dividend policy, unlike those who manage incorrectly. Meanwhile, despite the importance of dividend payments, they are not the only factors that our readers need to know when evaluating a company. Profit growth is usually based on the future value of dividend payments of the company. See if the 20 Johnson & Johnson Analysts we follow predict prolonged growth with our free Analyzers’ evaluation report on the company. Johnson & Johnson isn’t quite the opportunity you were looking for? Why don’t you look at our Choosing the best dividends.
You have reviews for this article? Concerned about content? Contact With us directly. Alternatively, email (AT) Simplywallst.com.
This Simply Wall ST article is general. We provide comments based on historical data and forecasts for analysts only using impartial methodology and our articles are not intended to be financial advice. This is not a recommendation to buy or sell shares and do not take into account your goals or your financial status. We strive to provide you with a long -term focused analysis led by basic data. Note that our analysis may not be reported in the latest significant companies or quality materials. Just Wall ST has no position in the reserves mentioned.