Johnson & Johnson Earnings: 5 Initial Takeaways

JNJ Dividend Chart
JNJ Dividend Chart

Johnson & Johnson has been growing its payout by a mid- to high-single-digit percentage in recent years, but the genuine prospect of slower growth toward the end of the decade could necessitate a tamer approach to dividend hikes in the future. With J&J already sporting a 2.8% yield with a payout of $2.80 per year, I wouldn't be surprised to see the company boost its payout to a clean $3 per year, or $0.75 per quarter.

In other words, expect J&J to remain an income investor's dream stock.

What this investor thinks

On one hand, I believe J&J is getting a bad rap because of its currency woes. If investors took the time to make apples-to-apples comparisons of J&J's three business segments, they would be pleasantly surprised overall. On the other hand, I worry about sluggish growth potential in the U.S. for J&J's medical device and diagnostics segment, and the recent slowdown in growth for Imbruvica.

All in all, this report hasn't swayed my opinion on Johnson & Johnson -- I still believe it to be a great long-term stock to consider buying -- but it's given me new points to monitor as we move forward.

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Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen nameTMFUltraLong, track every pick he makes under the screen nameTrackUltraLong, and check him out on Twitter, where he goes by the handle@TMFUltraLong.The Motley Fool owns shares of, and recommends Johnson & Johnson. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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