For 2021, JNJ expects revenue of $90.5 billion to $91.7 billion, representing a growth of 9.5% to 11% year-over-year, and adjusted earnings per share of $9.42 to $9.57, representing a growth of 17.3% to 19.3% year-over-year. JNJ also expects free cash flow of $23 billion to $24.5 billion, representing a growth of 13.9% to 21.3% year-over-year. JNJ’s guidance assumes a contribution of $2.5 billion from its Covid-19 vaccine, which is being sold on a not-for-profit basis during the pandemic.
JNJ Stock: A Generous and Reliable Dividend Payer
A third reason why JNJ stock is a healthy choice for investors is its generous and reliable dividend, which provides a steady and growing income stream for shareholders. JNJ has a long and impressive track record of dividend growth, having increased its dividend every year since 1963. JNJ is one of the few companies that have achieved the status of dividend king, which means it has raised its dividend for at least 50 consecutive years. JNJ’s dividend growth rate has averaged 6.3% over the past 10 years, 6.1% over the past five years, and 6.3% over the past year.
JNJ’s dividend is also well-supported by its earnings and cash flow, which indicate its ability and commitment to sustain and grow its dividend in the future. JNJ’s payout ratio, which measures the percentage of earnings that are paid out as dividends, is 50%, which is below its five-year average of 54% and within its target range of 40% to 60%. JNJ’s free cash flow payout ratio, which measures the percentage of free cash flow that are paid out as dividends, is 52%, which is below its five-year average of 55% and within its target range of 50% to 70%. JNJ’s dividend yield, which measures the annual dividend income per share divided by the share price, is 2.5%, which is above its five-year average of 2.4% and above the S&P 500 average of 1.3%.
Conclusion
JNJ stock is a healthy choice for investors who are looking for a reliable and resilient company that can deliver long-term value. JNJ is a leader in the healthcare sector, with a diversified portfolio of products and services that cater to various needs and markets across the globe. JNJ is a stable and growing performer, with a consistent track record of revenue and earnings growth, a strong balance sheet, and a positive outlook for 2021.
