Summary of Earnings The dividend cover is about 2.3, and there are normally four dividends per year (excluding specials).
What is JNJ current dividend?
As of December 3, 2021, Johnson & Johnson (JNJ) is paying out $4.24 per share in dividends. As of December 3, 2021, Johnson & Johnson’s dividend yield is 2.66 percent.
Is JNJ stock going to split?
- Within the next 18 to 24 months, Johnson & Johnson (JNJ) will be divided into two separate public businesses.
- One will receive its many consumer brands, while the other will receive its pharmaceuticals, medical devices, and medical technology businesses. both will benefit from this arrangement.
- The consumer company has yet to be named, while Johnson & Johnson will retain its brand.
- Drug sales are rapidly outpacing those of the consumer division, with an increase of $77 billion in just the last three years alone in annual revenue.
How often are dividends paid?
What is the frequency of dividend payments? However, some corporations pay their shareholders quarterly or semiannually in the United States. Each dividend must be approved by the company’s board of directors. As soon as this information is made public, investors will know exactly when and how much of a dividend they may expect to receive.
How long does it take to receive dividend payments?
It is common for major stock quoting services to communicate dividend announcements to the company’s qualified shareholders via press release; this makes it easier for shareholders to keep track of the latest developments in their investments. The most important dates for an investor to keep an eye on are:
- A record date, also known as the date of record, is established at the time of declaration. Every shareholder on record as of the dividend payment date is entitled to receive their share.
- The stock begins trading ex-dividend on the day before the record date, or the ex-date. Buying on ex-date indicates that the buyer will not be entitled to the most recent dividend.
The Depository Trust Corporation receives the monies from the company on the date of payment and distributes them to shareholders as scheduled (DTC). The DTC then distributes the cash payments to the various brokerage firms across the world where the company’s shares are held by shareholders. As instructed by the customer, the recipient firms apply cash dividends to client accounts and perform reinvestment operations.
Different dividend payment types, account types, and time periods have different tax implications, therefore it is best to consult your tax advisor if you have questions about your specific situation. Form 1099-DIV summarizes dividend payments for tax purposes each year.
How do I find my dividend payment date?
When a firm declares a dividend, the ex-dividend date, the record date, and the payment date are all significant.
Is JNJ a dividend aristocrat?
Atmos Energy forecasts its adjusted earnings-per-share to expand by 6 to 8 percent annually in the future due to an increase in its customer base and rate base.
Atmos Energy has a long history of dividend growth thanks to its strong competitive advantages. As a regulated utility with a blended allowable return on equity of 9.8 percent, Atmos Energy may expect to receive a consistent level of earnings. As a result, the business will continue to be lucrative. For the past 18 years, Atmos Energy has seen an increase in earnings per share.
Atmos Energy’s business model is very recession-resistant because it is a utility. Even in the depths of a severe recession, people will always require utility services, ensuring that the company’s dividends will continue to grow. All of the company’s assets comprise 72,000 miles of distribution and transmission lines, as well as 5,700 miles of interstate pipelines, and five natural gas storage facilities with a total operational storage capacity of 46 billion cubic feet.
Due to the company’s regulated business model, substantial assets, and long-term growth, Atmos Energy appears to have a very strong level of dividend safety. 37 years in a row, the dividend has been increased by the corporation.
A long-term dividend payout target of 50% is set by the corporation. To ensure that the company has enough money to engage in growth initiatives while still having enough money to pay out dividends, this long-term payout ratio is ideal.
Atmos Energy’s fiscal 2021 outlook predicts EPS of $5.00 at the midpoint and a dividend payout of $2.50 per share, thus the company is on track.
In comparison to our fair value assessment, the stock currently has a price-to-earnings ratio somewhat above 20. It’s not uncommon for a high-quality blue-chip firm to have a premium multiple, even if today’s stock prices are a bit expensive. As a result, we don’t expect a major shift in the value multiple in the near future.
Over the next five years, we predict the company’s EPS to expand at a rate of 6%. Over the course of the following five years, investors may expect to see a total return of almost 8% each year.
Dividend Aristocrat #3: Johnson & Johnson (JNJ)
According to market capitalization, Johnson & Johnson is the largest U.S. healthcare corporation. Since its inception, it has grown steadily and expanded its business approach, resulting in a colossal size. Medical equipment, pharmaceuticals, and consumer healthcare items are all strongholds for J&J, and the company is a global leader in all three.
By the year 2020, the aggregate revenue of these companies will be above $82 billion. J&J’s income climbed last year, despite the coronavirus pandemic causing the U.S. economy to enter a recession.
In 2021, the company has continued to grow as the economy continues to recover. During the first three months of 2021, J&J’s revenue increased by 8% to $22.3 billion. Shareholder value climbed by 13 percent from the same period last year.
Last quarter, J&J’s pharmaceutical division had a 10% increase in revenue due to a 19% increase in cancer sales. Darzalex, which treats multiple myeloma, and Imbruvica, which treats lymphoma, are two of its most important individual medications. As Stelara’s market share continues to grow, J&J’s Immunology revenue grew 8 percent.
There was an 11% increase in medical device sales, which was driven by a 30% increase in International Solutions’ revenue.
Since the 1880s, J&J has been in business. It has risen to the top of the healthcare business because of its extensive research and development efforts. In order to accomplish this, J&J spent more than $12 billion on R&D in 2013. Investments like this one assist the company develop innovative cures that will help it thrive in the long run.
There are now 28 platforms or individual items that generate more than $1 billion in annual revenue for J&J as a result of the company’s investment. J&J has been able to build a massive business thanks to its wide range of industry-leading products, as well as the benefits of not being unduly dependent on any one product line.
Another year of steady growth is predicted for the corporation in 2021. J&J has boosted its full-year forecast and now expects adjusted EPS of $9.42 to $9.57 for the year, up from $9.40 to $9.60 before. J&J’s adjusted EPS is expected to climb by 18 percent year-over-year at the midpoint of this estimate.
Over the next five years, we predict the company’s adjusted EPS to expand at a rate of 6% each year. In addition, it does not appear that shares are now overvalued. J&J stock has a price-to-earnings ratio of 17.9 based on its 2021 forecast.
This is somewhat above fair value, which we estimate at 17 times EPS, but J&J is still not overpriced. Investors are more than justified in paying a modest premium for a blue-chip company like J&J, which rarely trades for discounted valuation multiples.
However, despite the fact that the company’s P/E multiple may not rise in the future, its future EPS growth and dividend yield (now at 2.5 percent) should generate high-single-digit total returns. J&J has boosted its payout to shareholders for the past 59 years in a row. Due to its long history of dividend growth, it is both a Dividend Aristocrat and a Dividend King.
Dividend Aristocrat #2: AbbVie Inc. (ABBV)
In 2013, Abbott Laboratories (ABT) spun off AbbVie, a pharmaceutical company. From 2013 through 2020, AbbVie claims it delivered yearly sales growth of 13.5 percent and adjusted earnings per share growth of 18.8 percent.
To succeed in the future, AbbVie must overcome a major obstacle. Humira, the company’s most important product, will lose patent protection in the United States in 2023, making it vulnerable to biosimilar competition in numerous international markets, including Europe.
To replenish its pipeline, AbbVie has spent extensively in its own research and development infrastructure. In 2020, AbbVie spent $6.5 billion on R&D. A number of therapeutic domains, including immunology, hematology, and neuroscience are now potential replacements for Humira. A number of AbbVie’s new medications have the potential to be blockbusters in the future, demonstrating the company’s commitment to innovation. In the most recent quarter, Skyrizi sales surged by 89 percent, while Rinvoq revenue increased by more than double year-over-year.
In addition, AbbVie’s $63 billion acquisition of Allergan provides it with a foothold in the rapidly expanding global aesthetics industry. Botox is Allergan’s most popular product. There was a 35% increase in first-quarter sales for AbbVie’s aesthetics portfolio, which earned $1.1 billion in revenue.
AbbVie made $13 billion in revenue in the first quarter of 2021, up 51% from the same period last year. Over the past year, earnings per share increased by 22%. After reporting its first-quarter results, AbbVie also boosted its full-year guidance, reflecting the company’s better prospects. An adjusted EPS range of $12.37-$12.57 has been set for 2021 by AbbVie as of this writing. This year, AbbVie’s adjusted earnings per share (EPS) is predicted to rise by 18 percent, making it another year of robust growth for the pharmaceutical company.
Over the next five years, we predict the company’s EPS will expand by 3%. Due to the increased R&D spending required to maintain its pipeline, we believe this projection is conservative.
As a result, we believe that the stock is underpriced at this time. AbbVie stock has a P/E ratio of only 9.3 based on the company’s predicted adjusted EPS for 2021. A firm like AbbVie, which is both profitable and growing, is being valued at a relatively low multiple.
That’s why we think AbbVie’s low multiple on Humira-related earnings is so poor. However, we consider a price-to-earnings ratio of at least 10 to be fair value. For investors, a rise in valuation multiples could provide a little lift in returns in the future.
For the record, AbbVie is currently yielding 4.5% on its stock; the S&P 500 Index is currently yielding just 1.4%. Total gains over 9% per year are expected as a result of projected EPS growth, rising valuation multiples, and dividend payouts.
Stocks in AbbVie are expected to grow their dividends in the future. Since Abbott’s spin-off, it has reported strong dividend increases. AbbVie’s quarterly dividend climbed by 225 percent from 2013 to 2020, according to the firm.
Dividend Aristocrat #1: Becton, Dickinson & Company (BDX)
In the medical supply industry, Becton, Dickinson & Co. is a global leader. Revenues from outside the United States account for 45 percent of the company’s total annual revenue.
For the time being, BDX has three divisions: Medical Devices; Life Sciences; and Interventions. Needles for medication delivery systems and surgical blades are among the Medical Devices segment’s products.
The coronavirus pandemic has had no effect on BDX’s performance over the past year. BDX recorded a 15% increase in revenue in the most recent quarter, compared to the same period last year.
The Medication Delivery Solutions business continues to drive the Medical segment’s revenue growth of 4.7 percent to $2.3 billion. A resurgence in lab activity has resulted in a 38 percent rise in Life Science revenue. Finally, income in the interventional sector remained stable at $1 billion.
Reaffirming fiscal 2021 forecasts was part of quarterly financial results. BDX forecasts an adjusted EPS range of $12.75 to $12.85 for the current fiscal year. On a currency-neutral basis, revenue is expected to climb between 10 and 12 percent in fiscal 2021. It is projected that the company will continue to have solid growth in 2021, thanks in large part to the aging population and the rise in new economies.
This is primarily due to aging populations in many wealthy countries, such as the United States. In the United States, the Baby Boomer generation is a large group, which means that the demand for healthcare products and services is only going to rise in the future. BDX’s domestic expansion will be bolstered by this inherent advantage.
International expansion is a crucial driver of growth for the company, particularly in emerging markets where economic growth is outpacing that of industrialized markets. For example, in the most recent quarter, BDX’s overseas expansion was mostly driven by countries that are less developed. The company’s foreign revenue expanded by 26 percent, with 10 percent growth in developed countries and 24 percent growth in emerging markets, including a 62 percent increase in China.
For fiscal 2021, BDX stock trades at a P/E ratio of 19.1 based on estimated adjusted EPS of $12.80, which is midway between management projections. The stock’s 10-year average P/E multiple is 18.6, thus our objective price-to-earnings ratio is 18.6. A small overvaluation of the stock will have little effect on future shareholder returns.
Thus, if the present P/E multiple of 19.1 is cut over the next five years to 18.6, yearly shareholder returns would only be reduced by 0.5 percent each year. In addition, future earnings-per-share growth and dividends would improve shareholder returns.
Over the next five years, we believe BDX’s competitive advantages and growth potential from the numerous catalysts outlined above to result in a 10% annual EPS growth rate. Finally, the company’s shares currently yield 1.4 percent in dividends.
Over the next five years, we predict BDX to return a total of 10.9 percent each year. If you’re looking for a consistent and reliable blue-chip dividend company, this is a great investment opportunity! BDX is currently our top-ranked Dividend Aristocrat stock, thanks to its strong projected return.
When was the last time JNJ stock split?
Johnson & Johnson declared a 2-for-1 stock split in 1996, which was the company’s last split announcement. In the first quarter of 2001, Johnson & Johnson reported sales and earnings. Compared to the first quarter of 2000, sales of $7.8 billion and net earnings of $1.5 billion rose by 6.5% and 14.2%, respectively.
