Thursday, April 23, 2015

Dividend Growth Investing at Work: Johnson & Johnson (JNJ) Gives Owners a 7.1% Increase

Quick update today as I sit at the hospital with Luke! But it's one that I love, especially since Luke is doing better than last week.

I love hearing about dividend increases.  Like absolutely love them.  There's few things that I like more than getting paid extra just for owning quality companies.  This morning Johnson & Johnson announced they were increasing the dividend payout from $0.70 to $0.75.  That's a very solid 7.1% increase and the current yield is now right around 3.00%.  Since I own 50.213 shares of JNJ this will increase my forward 12-month dividends by $10.04.  I don't own nearly enough shares of JNJ and will be looking to add some more shares to my portfolio because I really want to increase my exposure to the health care industry.

The best part about the increase is that I didn't have to do one bit of research and development, or sales, or marketing.  All I had to do was have the foresight to invest some of my savings in an excellent company.  That's dividend growth investing at work!

Since I own 50.213 shares of JNJ this will increase my forward 12-month dividends by $10.04.  Since my portfolio's yield is 2.97% that's like I just invested another $338 in capital.  But I didn't have to because one of the companies I own decided to pay me more.  That's how you can eventually reach the crossover point where your dividends received exceed your expenses.

Johnson & Johnson was my third holding to announce a dividend increase this month and I expect at least another three and possibly five to announce increases.  Two of my holdings have given multiple smaller increases throughout the year but since they are in the oil and gas industry increases might be delayed.

My FI Portfolio's forward 12-month dividends are now at $5,595.64 and including my Loyal3 Portfolio's dividends of $55.48 brings my total forward dividends to $5,651.12.

11 comments:

  1. Woohoo another raise, JNJ don't disappoint! PG was less exciting, we'll see how XOM will fare. Thanks for sharing!

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    Replies
    1. F2FF,

      I'll be really interested to see what CVX and XOM do. My guess is 3-5% increases. Nothing spectacular but given the current environment in the O&G field I think that's reasonable. JNJ's increase was right where I thought it'd be and PG was a bit lower but not completely surprising. Got to love those dividend increases.

      Thanks for stopping by!

      Delete
  2. Replies
    1. FV,

      Any plans to add some JNJ in the future? For DGI's I think it's one of the best companies out there.

      Thanks for stopping by!

      Delete
  3. First, glad to hear about Luke.

    Second, thanks for the dividend update! Adds $12.29/year to my dividends. Earnings have been pretty strong throughout so I'm hoping for similar good things from my remaining companies that have not yet increased dividends for the year.

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    1. Scott,

      We're so glad that he's finally doing a bit better. He's still got a long way to go but it's been fairly stable for the last week which was very much needed.

      That's a solid increase. I have a few more increases expected this month so I'm looking forward to that. I love hearing about dividend increases.

      Thanks for stopping by!

      Delete
  4. When I bought more shares last week I suspect a 7% increase which would put us in line around 3% like you mentioned. It's great to see it happen though. Like you I wish I had more.

    Were all rooting for Luke to continue recovering as well, best of luck.

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    Replies
    1. Captain,

      Sometimes I try to front run dividend increase announcements and I was hoping to do so with JNJ. I keep wanting to add in the mid-$90s but it won't head down there for me. I'll probably add some over the next week because I really want to own more JNJ.

      Thanks for stopping by!

      Delete
  5. Onward and upward. I was very pleased with this recent announcement. JNJ is just continuing to prove itself as a long term dividend grower and as a staple in almost every DGI portfolio this news will no doubt make many of us happy.

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  6. Glad to hear that Luke is doing better. That's the best news in your post, JC.

    The JNJ dividend increase was very welcome news for the X portfolio. When I converted from index funds to a dividend & growth portfolio in 2013, the first 3 stocks that I bought were JNJ, PEP, and PG. JNJ is now the largest holding @ 4.3% with PEP just behind @ 4.0%. The only stock yielding a higher dollar value of dividends is T and that is because of the high yield (5.5%). Mrs. X and I are very happy owners of JNJ.
    Best of luck for you and the family,
    KeithX

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  7. PIP,

    JNJ is a great div stock to be invested in. There will always be continued growth in the company. One of my previous professors told us to buy the stock back when it was 60 dollars a share, I wish I would have listened to her! Overall, I think JNJ is a great buy from the divs it pays. The company will continue to increase their divs as well.

    Awesome post, good luck in the future!
    D2R

    ReplyDelete