Johnson & Johnson’s (JNJ) Dividend Track Record: Reliability in Uncertain Times

Johnson & Johnson (NYSE:JNJ) is included among the 14 Best Pharma Dividend Stocks to Buy in 2025.

Johnson & Johnson’s (JNJ) Dividend Track Record: Reliability in Uncertain Times

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Johnson & Johnson (NYSE:JNJ) has long been considered one of the most dependable dividend stocks, having increased its payouts for 63 consecutive years, including a 4.8% raise earlier this year. This consistency earns it a place among the elite Dividend Kings, a group of companies with more than 50 straight years of dividend growth.

Johnson & Johnson (NYSE:JNJ)’s second-quarter results once again underscored the strength behind its dividend. During the first half of the year, the company generated roughly $6.2 billion in free cash flow after spending $6.7 billion on research and development. That amount comfortably covered its dividend obligations, which totaled $6.1 billion so far this year.

Although this suggests a relatively tight payout ratio, there appears to be little cause for concern. Free cash flow is only slightly lower compared to the $7.5 billion the company posted during the same period last year. Johnson & Johnson (NYSE:JNJ) currently offers a quarterly dividend of $1.30 per share and has a dividend yield of 3.18%, as of July 17.

While we acknowledge the potential of JNJ to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than JNJ and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.