JNJ has paid uninterrupted dividends for over 60 years and has increased them annually for more than 50 – qualifying it as a Dividend King. As of March 2025:

• Dividend yield: ~2.9%
• Payout ratio: ~45–55%, considered healthy and sustainable
• 5-Year Dividend CAGR: ~6% annually

This consistency provides income-focused investors with a sense of stability, especially during economic downturns.

🚀 Strong Business Fundamentals

JNJ operates across three major segments:

• Pharmaceuticals – the company’s primary growth engine
• Medical Devices
• Consumer Health – spun off in 2023 into a separate company called Kenvue (KVUE)

This diversified structure protects against market shocks and helps maintain steady revenue, even when one segment underperforms.

🌍 Global Presence & Innovation

With operations in over 60 countries and a robust pipeline of drugs and medical technologies, JNJ is positioned to benefit from:

• Increasing global demand for chronic disease treatments
• Expanding healthcare access in emerging markets
• Demographic tailwinds like aging populations

⚡ Stability in Uncertain Times

JNJ holds a AAA credit rating from S&P – a distinction shared by only two U.S. companies: Johnson & Johnson and Microsoft. This reflects exceptional financial strength and prudent risk management.

During periods of market volatility, that level of safety is a rare and valuable asset.