Analyzing NYSE:JNJ's Dividend Potential.

JOHNSON & JOHNSON (NYSE:JNJ) has caught the attention of dividend investors as a stock worth considering. NYSE:JNJ excels in profitability, solvency, and liquidity, all while providing a decent dividend. Let's delve into the details.

Understanding NYSE:JNJ's Dividend

An integral part of ChartMill's stock analysis is the Dividend Rating, which spans from 0 to 10. This rating evaluates diverse dividend factors, including yield, historical data, growth, and sustainability. NYSE:JNJ has received a 7 out of 10:

• Compared to an average industry Dividend Yield of 4.42, JNJ pays a better dividend. On top of this JNJ pays more dividend than 93.10% of the companies listed in the same industry.
• JNJ's Dividend Yield is a higher than the S&P500 average which is at 2.47.
• On average, the dividend of JNJ grows each year by 9.96%, which is quite nice.
• JNJ has paid a dividend for at least 10 years, which is a reliable track record.
• JNJ has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
• 34.25% of the earnings are spent on dividend by JNJ. This is a low number and sustainable payout ratio.

Unpacking NYSE:JNJ's Health Rating

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NYSE:JNJ, the assigned 6 reflects its health status:

• An Altman-Z score of 4.81 indicates that JNJ is not in any danger for bankruptcy at the moment.
• With a decent Altman-Z score value of 4.81, JNJ is doing good in the industry, outperforming 79.80% of the companies in the same industry.
• JNJ has a debt to FCF ratio of 1.90. This is a very positive value and a sign of high solvency as it would only need 1.90 years to pay back of all of its debts.
• Looking at the Debt to FCF ratio, with a value of 1.90, JNJ belongs to the top of the industry, outperforming 92.12% of the companies in the same industry.
• JNJ has a Debt/Equity ratio of 0.39. This is a healthy value indicating a solid balance between debt and equity.
• Even though the debt/equity ratio score it not favorable for JNJ, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.

Profitability Analysis for NYSE:JNJ

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NYSE:JNJ, the assigned 7 is a significant indicator of profitability:

• Looking at the Return On Assets, with a value of 20.85%, JNJ belongs to the top of the industry, outperforming 97.04% of the companies in the same industry.
• JNJ's Return On Equity of 48.61% is amongst the best of the industry. JNJ outperforms 96.55% of its industry peers.
• Looking at the Return On Invested Capital, with a value of 17.33%, JNJ belongs to the top of the industry, outperforming 94.09% of the companies in the same industry.
• JNJ has a better Profit Margin (39.58%) than 98.03% of its industry peers.
• JNJ's Profit Margin has improved in the last couple of years.
• With an excellent Operating Margin value of 28.66%, JNJ belongs to the best of the industry, outperforming 94.58% of the companies in the same industry.
• JNJ's Gross Margin of 68.86% is fine compared to the rest of the industry. JNJ outperforms 75.37% of its industry peers.

Our Best Dividend screener lists more Best Dividend stocks and is updated daily.

Our latest full fundamental report of JNJ contains the most current fundamental analsysis.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.