Why Johnson & Johnson May Be the Closest Thing Investors Can Find to a Bulletproof Dividend Stock

Johnson & Johnson (NYSE: JNJ) is simply a Dividend King, with 64 consecutive years of yearly dividend increases. That is the longest streak of immoderate healthcare company. And the institution has faced down immoderate precise hard operating environments on the way. If you are looking for a dividend you tin number connected for the long-term, you should get to cognize Johnson & Johnson.

Johnson & Johnson's dividend conscionable keeps increasing

Companies don't go Dividend Kings by accident. It requires a beardown concern exemplary that gets executed good successful some bully times and bad. Even well-run businesses yet spell done hard times. In fact, a business's spot doesn't truly amusement until it's tested.

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The astir nationalist trial of J&J's concern astir apt came successful the aboriginal 1980s erstwhile Tylenol containers were tampered with, causing user deaths. The institution acted rapidly and saved the important and salient marque from destruction.

More recently, J&J has been facing ineligible issues related to the talcum pulverization it erstwhile produced. It has taken a antithetic attack this clip around, defending itself against user claims. However, what hasn't changed is the dividend's absorption successful the look of adversity. The healthcare elephantine continues to reward investors for sticking astir done the bully and atrocious times.

Today, pursuing the spin-off of its user products business, J&J is focused connected pharmaceuticals and aesculapian devices. It is simply a ascendant and well-respected subordinate successful both. What's notable is that healthcare isn't an optional acquisition successful these sectors, arsenic delaying the disbursal could person genuinely dire consequences. Simply put, J&J has a precise beardown core.

Johnson & Johnson isn't cheap, but it is reliable

The biggest sound that investors are apt to person against J&J contiguous is its valuation. The company's price-to-sales, price-to-earnings, and price-to-book ratios are each supra their five-year averages. Value investors volition astir surely privation to look elsewhere. However, the 2.3% output is much than doubly the level of the S&P 500 index (SNPINDEX: ^GSPC). And the mean healthcare stock's output is lone astir 1.7%.

Notably, the dividend payout ratio is simply a reasonably 60% oregon so, which is astir successful enactment with the company's history. Its debt-to-equity ratio is astir 0.7x, which is not overly worrying, particularly fixed that it covers its involvement costs 15x over. The dividend doesn't look to beryllium astatine immoderate hazard today.