Dividend Aristocrat Johnson & Johnson Declares New Dividend; Yield is 2.7%
According to a very old custom, Johnson & Johnsonit is (JNJ -2.24%) Board of Directors has declared a new quarterly common stock dividend. The sustainable Health care and a consumer goods company said Monday it would pay $1.01 per share on Sept. 8. Shareholders of record as of August 25 will be eligible for the distribution.
At Monday’s closing price, the dividend yields 2.7%.
This amount corresponds to the previous payment; before that, Johnson & Johnson had paid $0.95 per share. The increases are normal for the stock price of the company, which is a dividend aristocrat – one of a group of S&P500 components that have not only paid regular distributions, but have raised them at least once a year for at least 25 consecutive years. The company has one of the longest raise streaks, at 58.
Still a strong cash flow generator, Johnson & Johnson hasn’t necessarily been a big steal in terms of other fundamentals as of late. Its healthcare and consumer goods products have been impacted by economic downturns caused by the coronavirus pandemic, as evidenced by the second quarter results it came out last Thursday. Total sales fell nearly 11% year over year, while net earnings per share fell nearly 35%.
Yet despite this, the company remains a firm favorite with dividend share investors, in particular because this return is relatively generous. On Monday, after the announcement of the new installment, shares of Johnson & Johnson edged up just under 0.2%, lagging the gains of the day’s major stock indexes.