why is JNJ "Dividend Aristocrat"

Johnson & Johnson (JNJ) is a "Dividend Aristocrat" due to its long-standing history of consistently increasing dividends for an extended period. Here are the key reasons: 1. **Consecutive Dividend Increases**: JNJ has increased its dividend for over 60 consecutive years, which is a defining characteristic of a Dividend Aristocrat as per the S&P 500 Dividend Aristocrats index. 2. **Stable Financial Performance**: The company's strong financial foundation, evidenced by durable cash flow and a fortress-like balance sheet, supports the sustainability of its dividend payouts. 3. **Dividend Yield and Payout Ratio**: JNJ offers a dividend yield of 2.98% as of July 25, 2025, with a payout ratio of -53.34%. The negative payout ratio indicates that the company retains a significant portion of its earnings, which can be reinvested in the business and potentially lead to further dividend growth. |code|Ticker|Name|Date|Payout Ratio|Dividend Yield (TTM)|market_code| |---|---|---|---|---|---|---| |JNJ|JNJ.N|Johnson & Johnson|20240727|5.463536851736679||169| |JNJ|JNJ.N|Johnson & Johnson|20240728|5.463536851736679||169| |JNJ|JNJ.N|Johnson & Johnson|20240729|5.463536851736679|3.0936289101917254|169| |JNJ|JNJ.N|Johnson & Johnson|20240730|5.463536851736679|3.0405119940494636|169| |JNJ|JNJ.N|Johnson & Johnson|20240731|5.463536851736679|3.107543870763383|169| |JNJ|JNJ.N|Johnson & Johnson|20240801|5.463536851736679|3.0512926101020157|169| |JNJ|JNJ.N|Johnson & Johnson|20240802|5.463536851736679|2.988459851346412|169| |JNJ|JNJ.N|Johnson & Johnson|20240803|5.463536851736679||169| |JNJ|JNJ.N|Johnson & Johnson|20240804|5.463536851736679||169| |JNJ|JNJ.N|Johnson & Johnson|20240805|5.463536851736679|3.0420204651162788|169| 4. **Market Position and Growth Prospects**: As a leading player in the healthcare sector, JNJ's diversified business model and focus on pharmaceuticals, medical devices, and consumer health products provide a stable revenue base and potential for future earnings and dividend growth. 5. **Commitment to Dividend Growth**: The company's track record demonstrates a commitment to returning value to shareholders through consistent dividend increases, even during times of economic uncertainty, such as the global economic downturn impacted by the coronavirus pandemic. In summary, JNJ's lengthy history of dividend increases, strong financials, attractive yield, and growth prospects make it a standout among Dividend Aristocrats.