Johnson & Johnson

JNJ
HealthcareDividend King
$260.86
2.01%Overvalued

Johnson & Johnson (JNJ) is a Healthcare company that currently yields 2.01% — historically overvalued based on 10 years of dividend yield history. The Weiss valuation model places the undervaluation threshold at $153.90 and the overvaluation threshold at $194.74. Johnson & Johnson holds a quality score of 52/100 (Average), reflecting 64 consecutive years of dividend growth with a 61% payout ratio. The 5-year dividend CAGR stands at 5.2%.

JNJ Dividend Yield History — Weiss Valuation

Underval. $153.90Overval. $194.74

Distance to undervalued

Entry price is stretched

Needs 41.0% downside to reach the Weiss buy zone

Undervaluation starts near $153.90, where the annual dividend would imply roughly 3.40% yield. That is 1.40% above today's yield.

Buy-zone price

$153.90

Target yield

3.40%

Research checklist

What to clear before buying the yield

Updated Aug 13, 2026

Dividend durability

64Y

Long dividend history supports a deeper look.

Earnings payout

61%

Earnings coverage leaves room for noise.

Cash payout

76%

Free cash flow coverage supports the payment.

Dividend growth

5.2%

Recent growth adds income compounding potential.

What changed

What changed since the last update

2026-08-122026-08-13

No major change in signal, yield, price, quality, or payout since the last update.

Why Now?

Johnson & Johnson is trading near its historical overvaluation band.

Current yield 2.0% vs historical max 4.9% (41% of maximum).

14 consecutive years without a dividend cut.

Reasonable payout ratio of 61%.

What matters now

Read the signal before the headline yield

Valuation is the brake here: the yield is compressed versus its own history.

The 52/100 quality score says the headline yield needs extra skepticism.

Start by checking whether payout coverage and business durability still support the dividend.

JNJ Dividend Income Projection — DRIP Compounder

Dividend Compounder (DRIP)

$

Year 1 Income

$211

Year 10 Income

$421

Yield on Cost

4.35%

Total Income

$3,030

Assumes dividends reinvested at current price. Simplified model — for illustrative purposes only.

Track actual vs. projected

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More research

Full price history & technical analysis

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Fundamentals, valuation & analyst ratings

FinViz ↗

Moat rating & analyst fair value

Morningstar ↗

Track dividends received & tax reports

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JNJ Dividend Quality Score

Quality Score

52/ 100

Average

Payout Ratio12/25
Dividend Streak20/25
Growth (CAGR 5Y)15/20
Yield vs History0/15
FCF Coverage5/15

Key Metrics

Current Price$260.86
Annual Dividend$5.24
Current Yield2.01%
Yield — Max (10Y)4.89%
Yield — Min (10Y)2.76%
Undervalued Below$153.90
Overvalued Above$194.74
Payout Ratio60.79%
CAGR Dividend 5Y5.2%
CAGR Dividend 10Y5.7%
Years No Cut14y

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64
consecutive years of dividend growth