AMGN vs JNJ: Dividend Yield, Growth & Safety Comparison
Amgen Inc (AMGN) and Johnson & Johnson (JNJ) are both in the Health Care sector, making them natural rivals for dividend investors. AMGN edges ahead on yield at 2.61% versus JNJ's 2.16%. For dividend growth, AMGN leads with a 5-year CAGR of 15.9% versus JNJ's 5.2%. JNJ holds the edge in dividend safety with a "Safe" rating. AMGN is a Dividend Contender while JNJ is a Dividend King.
Key Metrics Comparison
| Metric | AMGN | JNJ |
|---|
| Dividend Yield | 2.61% | 2.16% |
| Annual Dividend | $9.52 | $5.14 |
| 5-Year CAGR | 15.9% | 5.2% |
| Payout Ratio | 67% | 47% |
| Consecutive Years | 14 | 63 |
| Price | $369.70 | $243.53 |
Yield Comparison
Amgen Inc (AMGN) currently yields 2.61%, which is solid for the broader market. That's 0.45% more than Johnson & Johnson (JNJ), which yields 2.16%. In dollar terms, AMGN pays $9.52/share annually versus JNJ's $5.14/share.
Dividend Growth
Over the past five years, AMGN has grown its dividend at a 15.9% CAGR compared to JNJ's 5.2%. AMGN: Dividend growth is slowing — the 3-year CAGR of 5.7% trails the 5-year rate of 15.9% and the 10-year rate of 13.7%. JNJ: Dividend growth is slowing — the 3-year CAGR of 4.6% trails the 5-year rate of 5.2% and the 10-year rate of 5.6%.
Dividend Safety
AMGN's dividend safety is rated "Moderate." The payout ratio of 67% is moderate. The dividend is currently covered by earnings but leaves less room for growth. Earnings cover the dividend 1.5x. JNJ's dividend safety is rated "Safe." The payout ratio of 47% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 2.1x. JNJ's payout ratio of 47% is more conservative than AMGN's 67%, suggesting more room for future increases.
Income Comparison
A $10,000 investment in AMGN generates approximately $261/year in dividend income, compared to $216/year from JNJ — a difference of $45/year. At $100,000, that gap widens to $450/year.
Verdict
- Best for income: AMGN
- Best for growth: AMGN
- Best for safety: JNJ
Frequently Asked Questions
Which has a higher dividend yield, AMGN or JNJ?
Amgen Inc (AMGN) has a higher dividend yield of 2.61% compared to Johnson & Johnson (JNJ) at 2.16%.
Is AMGN or JNJ a better dividend growth stock?
Amgen Inc has the stronger dividend growth with a 5-year CAGR of 15.9%, compared to Johnson & Johnson's 5.2%.
Which is safer for dividend income, AMGN or JNJ?
Amgen Inc's dividend safety is rated "Moderate" while Johnson & Johnson is rated "Safe." The payout ratio of 67% is moderate. The dividend is currently covered by earnings but leaves less room for growth. Earnings cover the dividend 1.5x. The payout ratio of 47% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 2.1x.
How much income does $10,000 in AMGN vs JNJ generate?
A $10,000 investment in AMGN generates approximately $261/year in dividends, while the same amount in JNJ generates about $216/year.
Is AMGN or JNJ a Dividend Aristocrat?
Amgen Inc is a Dividend Contender (14 years) and Johnson & Johnson is a Dividend King (63 years).
Which has a lower payout ratio, AMGN or JNJ?
Johnson & Johnson has a lower payout ratio of 47% compared to Amgen Inc's 67%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
AMGN vs JNJ: which is better for retirement income?
It depends on your priorities. AMGN for current income, AMGN for dividend growth, JNJ for safety. Many retirement investors hold both for diversification.
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