When interest rates rise, income investors should keep in mind that high-yielding equities tend to struggle.. With this in mind, JNJ is an excellent investment. The Zacks Rank of the company now stands at 3, making it a solid dividend investment as well (Hold).
How much does JNJ pay in dividends annually?
A dividend of $4.14 per share is paid out by JNJ. Each year, JNJ pays out a dividend yielding 2.53%. This year’s dividend of $4.03 per share is lower than the 4.03 percent average for the US Drug Manufacturers – General industry, but it is higher than the 3.4% average for the entire US market.
What is Procter & Gamble’s dividend?
In general, Procter & Gamble has a long track record of paying off for its investors and shareholders. For decades, the corporation has weathered a variety of difficulties and has maintained its dividend. The coronavirus pandemic is the most recent in a long list of issues. As a result of the nature of its products, it has been able to remain in business for so long. Paper towels and laundry detergent are household necessities regardless of the economic cycle.
Is JNJ a dividend aristocrat?
Atmos Energy expects to see a 6% to 8% annual increase in its adjusted earnings-per-share as a result of new customers and rate base expansion.
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. This ensures that the company will continue to generate revenue. For the past 18 years, Atmos Energy’s earnings-per-share have increased.
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. For the past 37 years, the corporation has grown its dividend.
Long-term dividend payout targets are set at 50 percent. Over time, this is a good long-term payout ratio, ensuring that the company has adequate capital to engage in growth plans while still allowing for lots of dividends.
Atmos Energy’s fiscal 2021 outlook predicts EPS of $5.00 at the company’s midpoint, with a current annualized dividend payout of $2.50 per share.
In comparison to our fair value assessment, the stock currently has a price-to-earnings ratio somewhat above 20. Despite the fact that the stock market is currently overpriced, it is not unusual for a high-quality blue chip business to have a premium multiple. 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%. Assuming an annual rate of return of 8% for the next five years, this yields total returns of around 8%.
Dividend Aristocrat #3: Johnson & Johnson (JNJ)
It is the most valuable healthcare corporation in the United States, with a market value in excess of $400 billion. Because of its consistent expansion and varied business model with large enterprises across the healthcare spectrum, its colossal size is a result. Medical equipment, medicines, and consumer healthcare items all fall under the umbrella of J&J, and the company has a commanding lead in each.
Revenue from these enterprises is expected to total $82 billion in 2020. 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. J&J’s first-quarter revenue increased by 8% to $22.3 billion in 2021. There was a 13 percent rise over last year in adjusted earnings per share.
Last quarter, J&J’s pharmaceutical division had a 10% increase in revenue due to a 19% increase in cancer sales. These include Darzalex, a treatment for multiple myelodysplastic syndrome; Imbruvica, an anti-lymphoma drug. 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.
Founded in the 1880s, J&J has been around for more than 130 years now. Its massive efforts in R&D have helped it to rise to the top of the healthcare business. In order to accomplish this, J&J spent more than $12 billion on R&D in 2013. This investment aids the company’s ability to develop new cures that will help it flourish in the long run.
As a result of this investment, J&J now has 28 platforms or specific items that each generate over $1 billion in yearly sales.. J&J has established an immense business thanks to a wide range of industry-leading products, as well as the diversification benefits of not being unduly vulnerable to any one product line.
Another year of steady growth is predicted for the corporation in 2021. After raising its full-year outlook, J&J management now expects adjusted earnings per share of $9.42 to $9.57 for the year, up from a previously stated range of $9.00 to $9.60 in the first quarter. J&J’s adjusted EPS is expected to climb by 18 percent year-over-year at the midpoint of this estimate.
Six percent annual growth in adjusted EPS is expected over the next five years for the company. Shares are also not overvalued at this time. On the basis of the company’s 2021 forecast, J&J stock has a P/E ratio of 17.9.
This is slightly above fair value, which we estimate to be 17 times EPS, but J&J is still not unduly expensive. In the case of J&J, investors are more than justified in paying a premium for a blue-chip company because premium businesses rarely sell at discounted valuation multiples.
Even if the company’s P/E multiple doesn’t rise in the future, its EPS growth and dividend yield (now at 2.5 percent) should still generate high-single digit total returns. For 59 years in a row, Johnson & Johnson has raised its dividend. Dividend Aristocrat and Dividend King because of its long-term dividend increase.
Dividend Aristocrat #2: AbbVie Inc. (ABBV)
In 2013, Abbott Laboratories (ABT) spun off AbbVie, a pharmaceutical company. According to AbbVie, revenue and adjusted earnings-per-share grew by 13.5% annually and 18.8% during the five-year period 2013-2020.
AbbVie’s future is clouded by a huge obstacle. Several international regions, notably Europe, are now facing biosimilar competition for Humira, and the U.S. will lose patent exclusivity in 2023.
To replenish its pipeline, AbbVie has made significant investments in its own R&D infrastructure. In 2020, AbbVie expects to spend $6.5 billion on research and development. The therapeutic areas of immunology, hematology and neuroscience provide numerous growth potential to replace Humira. There are several new drugs AbbVie hopes will become blockbusters as a result of these investments. In the most recent quarter, Skyrizi sales surged by 89 percent, while Rinvoq revenue increased by more than double year-over-year.
After that, AbbVie’s acquisition of Allergan for $63 billion opens it up to the rapidly expanding global aesthetics market. Botox is the company’s flagship product. Aesthetics revenue at AbbVie was up 35% year-over-year to $1.1 billion in the first quarter..
AbbVie made $13 billion in revenue in the first quarter of 2021, up 51% from the same period last year. Year-over-year, earnings per share increased by 22%. AbbVie also boosted its full-year forecast after reporting its first-quarter results. Adjusted earnings-per-share for AbbVie are now expected in the $12.37 to $12.57 range in 2021. 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 estimate the company to have a 3% increase in profits per share. Due to the increased R&D spending required to keep developing its pipeline, we believe this projection is highly conservative.
Next, we believe the stock is undervalued. Based on predicted 2021 adjusted EPS, AbbVie stock trades at a price-to-earnings ratio of just 9.3. AbbVie is a highly lucrative and expanding corporation, yet its price multiple is quite low.
Investors’ apprehension over AbbVie’s future with Humira, in our opinion, is to blame for the company’s low value multiple. In any event, we consider a P/E ratio of at least 10 to be a reasonable value. For investors, a rise in valuation multiples could provide a small lift.
Last but not least, AbbVie stock currently pays a dividend of 4.5%, which is much better than what you’ll get from the S&P 500 Index, which currently pays just 1.4%. We predict total returns of more than 9% per year based on the combination of projected EPS growth, a growing valuation multiple, and dividend payouts.
AbbVie is a dividend-paying company. Since Abbott’s spin-off, it has reported strong dividend increases. According to AbbVie, the company’s weekly dividend increased by 225 percent cumulatively between 2013 and 2020.
Dividend Aristocrat #1: Becton, Dickinson & Company (BDX)
There are few medical supply companies that can match Becton, Dickinson & Company’s global prominence in the field. With an annual revenue of more than $19 billion, the corporation is mostly dependent on sales outside the United States (around 45 percent).
BDX is now divided into three divisions: medical devices, life sciences, and intervention. Needles for drug delivery systems and surgical blades are among the supplies available in the Medical Devices section.
Although the coronavirus epidemic had a negative influence on the global economy, BDX has performed well over the past year. BDX’s revenue increased by 15% year-over-year in the most recent reported quarter.
The Medication Delivery Solutions business continues to drive the Medical segment’s revenue growth of 4.7 percent to $2.3 billion. Meanwhile, sales from Life Sciences increased by 38% as biosciences expanded by double digits as lab activity recovered. Finally, income in the interventional sector remained stable at $1 billion.
In addition to announcing its third-quarter financial results, the company also updated its fiscal year 2021 guidance. This year, the company’s adjusted earnings per share are expected to vary between $12.75-21.85. On a currency-neutral basis, revenue is expected to climb by 10% to 12% in fiscal 2021. The aging population and the expansion of emerging countries are likely to continue the company’s strong growth in 2021.
In the first place, an aging population plagues many wealthy countries like the United States. For example, the Baby Boomer generation in the United States is a large cohort, which means that demand for healthcare products and services will only 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. A good example of this is the recent increase in BDX’s worldwide revenue, which was mostly driven by developing countries. The company’s overseas sales expanded by 26%, with established nations contributing 10% of the rise while emerging markets contributed 24% of the increase, with China accounting for 62% of the increase.
BDX stock presently has a price-to-earnings ratio of 19.1 based on a projected adjusted EPS of $12.80 for fiscal 2021, which is the midpoint of management projection. To match the stock’s 10-year average P/E multiple, our target price-to-earnings ratio is 18.6. A small overvaluation of the stock will have little effect on future shareholder returns.
A P/E multiple of 18.6 over the next five years would only diminish yearly shareholder returns by 0.5% per year. In addition, future earnings-per-share growth and dividends would enhance 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 current dividend yield for the stock is 1.4 percent.
Overall, we predict BDX to produce annual returns of 10.9% over the next five years. This is a high rate of return, especially for a dividend-paying blue chip company. Dividend Aristocrat BDX has a high projected return and is now our top pick.
Is JNJ a defensive stock?
- To put it another way, a “defensive” investment is one that offers steady dividends and earnings independent of the broader stock market’s performance.
- Defensive stocks include well-known corporations like Procter & Gamble, Johnson & Johnson, Philip Morris International, and Coca-Cola.
- Defensive stocks give a major advantage over other stocks in terms of long-term gains and lower risk.
- Due to the low volatility of defensive stocks, they tend to have smaller gains during bull markets and a tendency to mistime the market.
Does Colgate pay dividends?
After nearly a century of consecutive dividend payments, Colgate-Palmolive has increased its payouts to shareholders every year since 1895.
Does Clorox pay a dividend?
Furthermore, Clorox has strong brands, skilled management, and outstanding long-term financial performance, making it a powerful firm overall.
In addition, the organization has benefited from the recent trend of spending more time at home. And there’s a big market for its cleaning supplies, too.
Clorox is just one of many dividend-paying stocks that have been around for a long time. Since 1970, the corporation has distributed yearly dividends. The dividend rate has risen every year since 1978, and it continues to rise. Clorox is now a Dividend Aristocrat because of this accomplishment. Dividends from the corporation appear to be well-funded and likely to rise in the future.
4. The stock price has increased significantly. And it appears to be trading at or around its fair value right now. Stock in Clorox is a good long-term investment for dividend growth investors. It’s time to open and fund that IRA you’ve been thinking about for a while now. Dollar-cost averaging purchases can be made with this product. Alternatively, if the stock price falls more, you can make additional investments.
Now that we’ve covered the essentials, it’s time to get into the nitty gritty.
Also, go over the Clorox dividend history.
When is the best time to buy this stock?
Alternatively, why not wait for the stock price to fall?
Is it wise to put money into Clorox?
We’ll address all of these concerns and more. To begin, let’s take a look at the company and the things it offers.
When it comes to entertainment, why not try something new? If you’re interested in learning more about dividend investing, you may search through our past articles.
Will JNJ increase dividend?
New Brunswick, New Jersey (Apr. 14, 2020) The New Brunswick, New Jersey It has been revealed that the Board of Directors at Johnson and Johnson has decided to increase the quarterly dividend rate by 6.3 percent to $1.01.
“The Board has voted to enhance the quarterly dividend for the 58th consecutive year in honor of our 2019 results, solid financial position and confidence in the future of Johnson & Johnson,” stated Alex Gorsky, Chairman and CEO of the business.
Annually, the dividend is $4.04 per share at the new rate, up from $3.80 per share at the prior rate. As of the close of business on May 26, 2020, shareholders of record will receive the next quarterly dividend, which will be paid on June 9, 2020. May 22, 2020 is the ex-dividend date.
Health is the cornerstone for flourishing lives, dynamic communities, and forward progress at Johnson & Johnson. Our goal has been to keep individuals healthy throughout their lives for more than 130 years. “As a global healthcare firm, we are committed to harnessing our size and reach for the greater good,” we said in a statement. We are committed to improving access and affordability, creating healthier communities, and making a healthy mind, body, and environment accessible to everyone. In order to fundamentally alter the destiny of health for humanity, we are combining our heart, science, and inventiveness.
