Johnson & Johnson’s Dividend Streak

Sometime later this month Johnson & Johnson (JNJ) will announce its 48th consecutive annual dividend increase. This dividend hike probably won’t make much news but I urge all serious investors to take notice. Half a century of rising dividends is a remarkable achievement.
JNJ’s current quarterly dividend is 49 cents a share which works out to a yield of about 3%. Last year’s increase was fairly small, just 7.7%. Alan Brochstein speculates that this year’s increase will be 10%, which brings the dividend to 54 cents a share. That sounds about right to me. If that’s the case, then JNJ currently yield about 3.3%.
If you want to see how important dividends are for long-term investing, consider that a person who bought JNJ 25 years ago may soon be getting close 100% a year just in dividends.

Posted by on April 6th, 2010 at 3:41 pm


The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.