Analyzing JOHNSON & JOHNSON (NYSE:JNJ)'s Dividend Potential.

Unearth the potential of JOHNSON & JOHNSON (NYSE:JNJ) as a dividend stock recommended by our stock screening tool. JNJ maintains a robust financial footing and delivers a sustainable dividend. We'll delve into the details below.

Understanding JNJ's Dividend Score

To gauge a stock's dividend quality, ChartMill utilizes a Dividend Rating ranging from 0 to 10. This comprehensive assessment considers various dividend aspects, including yield, history, growth, and sustainability. JNJ has achieved a 7 out of 10:

• Compared to an average industry Dividend Yield of 4.18, JNJ pays a better dividend. On top of this JNJ pays more dividend than 93.94% of the companies listed in the same industry.
• JNJ's Dividend Yield is a higher than the S&P500 average which is at 2.45.
• The dividend of JNJ is nicely growing with an annual growth rate of 9.24%!
• JNJ has been paying a dividend for at least 10 years, so it has a reliable track record.
• JNJ has not decreased their dividend for at least 10 years, which is a reliable track record.

How do we evaluate the Health for JNJ?

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. JNJ has earned a 5 out of 10:

• JNJ has an Altman-Z score of 4.08. This indicates that JNJ is financially healthy and has little risk of bankruptcy at the moment.
• JNJ has a better Altman-Z score (4.08) than 79.29% of its industry peers.
• The Debt to FCF ratio of JNJ is 2.57, which is a good value as it means it would take JNJ, 2.57 years of fcf income to pay off all of its debts.
• JNJ has a better Debt to FCF ratio (2.57) than 91.41% of its industry peers.

Evaluating Profitability: 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 JNJ, the assigned 7 is a significant indicator of profitability:

• The Return On Assets of JNJ (11.26%) is better than 93.43% of its industry peers.
• With an excellent Return On Equity value of 27.92%, JNJ belongs to the best of the industry, outperforming 94.44% of the companies in the same industry.
• JNJ has a better Return On Invested Capital (13.67%) than 89.90% of its industry peers.
• JNJ's Profit Margin of 24.41% is amongst the best of the industry. JNJ outperforms 95.45% of its industry peers.
• JNJ has a Operating Margin of 26.16%. This is amongst the best in the industry. JNJ outperforms 90.40% of its industry peers.
• JNJ's Operating Margin has improved in the last couple of years.
• Looking at the Gross Margin, with a value of 68.34%, JNJ is in the better half of the industry, outperforming 73.23% of the companies in the same industry.

Every day, new Best Dividend stocks can be found on ChartMill in our Best Dividend screener.

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

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.