Dividend Aristocrat Overview: Johnson & Johnson

About Johnson & Johnson

Johnson & Johnson is one of the world’s leading health care companies, employing nearly 130,000 employees across 275 operating companies.  Founded in 1886 in New Jersey, the company’s business units are spread across three major categories: Consumer Healthcare, Medical Devices & Diagnostics, and Pharmaceuticals.  Major brand names include Johnson’s, Aveeno, Clean & Clear, Neutrogena, RoC, Libriderm, Dabao, Listerine, Rembrandt, Reach, Band-Aid, Neosporin, Spelnda, Tylenol, Sudafed, Motrin IB, and Pepcid AC.

The company is a member of both the S&P 500 and Dow 30 indices and is traded under the ticker symbol JNJ.

Johnson & Johnson’s Dividend and Stock Split History

JNJ traditionally announces dividend increases in the 2nd quarter of the calendar year; in 2013 it raised its quarterly dividend by over 8%, increasing the payout to 66 cents from 61 cents.  JNJ became a Dividend Aristocrat in 1987 and has raised its dividend for 51 consecutive years, starting with its first increase in 1962.

The company has increased the quarterly dividend payout in each of the last three years by between 5.6 and 8.2%, and in 2009 and 2010 increased the dividend payout by over 10%.  This has resulted in a 5 year compounded dividend increase of 7.6%.  JNJ has compounded their dividends over the last 10 and 20 years by 10.8% and 12.4%, respectively.  The company has compounded its dividend by 13.1% annually since becoming a Dividend Aristocrat in 1987.

JNJ’s stock has split seven times since 1959: 2 for 1 splits in June 1992, June 1996, June 2001, and May 1989; 2 ½ for 1 split in January 1959, and 3 for 1 splits in May 1981 and May 1970.  Accounting for all these splits, 1 share of JNJ owned at the beginning of 1959 would now be 360 shares.

Direct Purchase and Dividend Reinvestment Plans

JNJ does not offer a direct investment plan but does offer a dividend reinvestment plan, which is administered through Computershare.  JNJ pays most purchase fees associated with the dividend reinvestment plan with one exception – the only exception is a $1 automatic reinvestment fee.  The investor is responsible for paying fees when selling shares through the plan.  Once enrolled in the plan, investors can purchase additional shares directly with a low minimum of $25.

Investors interested in participating in the dividend reinvestment plan must own their shares directly, and not in “book form” through a broker.  Investors that own shares in book form must direct their broker to transfer the shares directly to them in certificate form.  If investors own shares in certificate form, those shares can be transferred into the plan.  Specific information on the dividend reinvestment plan, including enrollment forms and fees are available at the ComputerShare Investor Centre webpage for JNJ.

Helpful Links

Johnson & Johnson Investor Relations

Current quote and financial summary (finviz.com)

One thought on “Dividend Aristocrat Overview: Johnson & Johnson

  1. Pingback: Dividend Aristocrats Week in Review for April 26, 2014: Johnson & Johnson Increases Dividend for 52nd Year | Dividend Aristocrat Stocks

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