Johnson & Johnson (NYSE:JNJ) Increases Dividend to $1.34 Per Share

Key Points

• Dividend raised to $1.34 per share (a 3.1% increase from $1.30) for a 2.2% yield; shareholders of record on May 26 will be paid on June 9.
• The raise continues JNJ’s 64-year streak of annual dividend increases, and a payout ratio around 46.8% suggests the dividend is well covered by earnings.
• Johnson & Johnson beat Q1 estimates with $2.70 EPS (vs. $2.68) and $24.06B revenue (up 9.9% YoY), and set FY2026 guidance of $11.45–$11.65 EPS.

Johnson & Johnson (NYSE:JNJ - Get Free Report) declared a quarterly dividend on Tuesday, April 14th. Investors of record on Tuesday, May 26th will be given a dividend of 1.34 per share on Tuesday, June 9th. This represents a c) annualized dividend and a yield of 2.2%. The ex-dividend date is Tuesday, May 26th. This is a 3.1% increase from Johnson & Johnson's previous quarterly dividend of $1.30.

Johnson & Johnson has raised its dividend payment by an average of 0.1%per year over the last three years and has raised its dividend every year for the last 64 years. Johnson & Johnson has a payout ratio of 46.8% indicating that its dividend is sufficiently covered by earnings. Equities analysts expect Johnson & Johnson to earn $11.07 per share next year, which means the company should continue to be able to cover its $5.20 annual dividend with an expected future payout ratio of 47.0%.

Johnson & Johnson Price Performance

NYSE:JNJ traded up $2.18 during mid-day trading on Tuesday, hitting $240.14. The company's stock had a trading volume of 10,316,144 shares, compared to its average volume of 8,674,771. Johnson & Johnson has a fifty-two week low of $146.12 and a fifty-two week high of $251.71. The company has a current ratio of 1.03, a quick ratio of 0.77 and a debt-to-equity ratio of 0.48. The company has a market capitalization of $578.40 billion, a price-to-earnings ratio of 21.73, a P/E/G ratio of 2.38 and a beta of 0.34. The stock has a fifty day moving average of $241.44 and a 200-day moving average of $215.95.

Johnson & Johnson (NYSE:JNJ - Get Free Report) last announced its earnings results on Tuesday, April 14th. The company reported $2.70 EPS for the quarter, topping the consensus estimate of $2.68 by $0.02. The business had revenue of $24.06 billion for the quarter, compared to the consensus estimate of $23.60 billion. Johnson & Johnson had a return on equity of 33.04% and a net margin of 28.46%.Johnson & Johnson's revenue was up 9.9% compared to the same quarter last year. During the same period in the previous year, the business earned $2.77 EPS. Johnson & Johnson has set its FY 2026 guidance at 11.450-11.650 EPS. As a group, equities analysts forecast that Johnson & Johnson will post 10.58 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, EVP Vanessa Broadhurst sold 6,197 shares of the business's stock in a transaction dated Tuesday, February 17th. The stock was sold at an average price of $243.39, for a total value of $1,508,287.83. Following the completion of the transaction, the executive vice president owned 23,003 shares of the company's stock, valued at $5,598,700.17. The trade was a 21.22% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, EVP Timothy Schmid sold 1,322 shares of the company's stock in a transaction on Friday, February 20th. The stock was sold at an average price of $245.66, for a total value of $324,762.52. Following the sale, the executive vice president owned 25,447 shares of the company's stock, valued at $6,251,310.02. The trade was a 4.94% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders have sold 30,142 shares of company stock valued at $7,360,528. Corporate insiders own 0.16% of the company's stock.

Hedge Funds Weigh In On Johnson & Johnson

Several large investors have recently modified their holdings of JNJ. Brighton Jones LLC lifted its position in shares of Johnson & Johnson by 13.9% in the 4th quarter. Brighton Jones LLC now owns 51,876 shares of the company's stock worth $7,502,000 after purchasing an additional 6,332 shares during the period. United Bank increased its stake in Johnson & Johnson by 110.7% during the 1st quarter. United Bank now owns 9,279 shares of the company's stock valued at $1,539,000 after purchasing an additional 4,876 shares in the last quarter. Sivia Capital Partners LLC increased its stake in Johnson & Johnson by 13.4% during the 2nd quarter. Sivia Capital Partners LLC now owns 5,863 shares of the company's stock valued at $896,000 after purchasing an additional 692 shares in the last quarter. Wealth Group Ltd. boosted its holdings in Johnson & Johnson by 12.8% during the second quarter. Wealth Group Ltd. now owns 1,482 shares of the company's stock worth $226,000 after purchasing an additional 168 shares during the last quarter. Finally, Schnieders Capital Management LLC. grew its holdings in shares of Johnson & Johnson by 9.8% in the second quarter. Schnieders Capital Management LLC. now owns 73,680 shares of the company's stock valued at $11,255,000 after acquiring an additional 6,584 shares in the last quarter. Institutional investors own 69.55% of the company's stock.

About Johnson & Johnson

Johnson & Johnson is a multinational healthcare company headquartered in New Brunswick, New Jersey, that develops, manufactures and markets a broad range of products across pharmaceuticals, medical devices and previously consumer health. Founded in 1886 by the Johnson family, the company has grown into a global healthcare organization with operations and sales in many countries around the world.

The company's pharmaceuticals business, organized largely under its Janssen research and development organization, focuses on prescription medicines across therapeutic areas such as immunology, infectious disease, oncology and neuroscience.

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