Dividend Aristocrats In Focus Part 24: Johnson & Johnson

Johnson & Johnson (JNJ) has an incredible history. It was founded all the way back in 1886, by three brothers—Robert Wood Johnson, James Wood Johnson, and Edward Mead Johnson.

Johnson & Johnson was incorporated in 1887. The following year, the three brothers published “Modern Methods of Antiseptic Wound Treatment”, a manuscript that would quickly become the standard for antiseptic surgery techniques. The same year, the three brothers began selling first aid kits, which also became the standard-bearer among that product category.

From there, Johnson & Johnson gradually unveiled new products, including baby powder, sanitary napkins, dental floss, and other products that were the first of their kind.

Today, J&J operates in more than 60 countries across the world and employs 126,500 people.

J&J has increased its dividend for an amazing 54 years in a row. The qualification to be a Dividend Aristocrat is to pay increasing dividends for 25+ consecutive years (and be in the S&P 500). You can see all 50 Dividend Aristocrats here.

J&J matches this qualification more than twice over. It is in an even more select group called the Dividend Kings – stocks with 50+ consecutive years of dividend increases.

Keep reading this article to learn more about the investment prospects of the eking of stability in the health care sector, J&J.

Business Overview

J&J is a massive company, with more than 260 subsidiary companies. In all, it manufactures and sells health care products through three main segments:

These are all huge businesses. J&J has the world’s sixth-largest consumer health company, the sixth-largest biologics, and the fifth-largest pharmaceutical company.

J&J’s large and diversified portfolio have helped the company generate consistent growth for decades. Last year, the company marked 32 consecutive years of growth in earnings-per-share after adjusting for nonrecurring items like divestitures and acquisitions. This streak of earnings-per-share growth is the best in the corporate world, to my knowledge.Over the past 10 years, J&J grew earnings-per-share by 3.8% compounded annually.