Summary
Johnson & Johnson is both a Dividend Aristocrat and a Dividend King, and is one of the most well-known dividend growth stocks in the public markets.
However, recent talc coverage from Reuters has led some investors to question the safety of Johnson & Johnson's dividend payment.
In this article, we perform a deep dive into Johnson & Johnson's dividend safety by looking at earnings, free cash flow, recession performance, and debt.
The company's dividend is very safe relative to its fundamental financial metrics.
With an above average dividend yield and a dividend growth streak that spans more than 5 decades, Johnson & Johnson (JNJ) is one of the most widely-followed dividend growth stocks in our investment universe. The company's stock is used by many investors as a safe source of reliable dividend growth from the healthcare sector.
With that said, the recent allegations regarding the cancer-causing capabilities of Johnson & Johnson's baby powder that was published in a Reuters article has led some investors to question the safety of Johnson & Johnson's current dividend payment.
In this article, we measure Johnson & Johnson's dividend safety relative to earnings, free cash flow, recession performance, and debt. If you prefer learning through videos, you can watch a video analysis on this topic below:
