BDX vs JNJ: Dividend Yield, Growth & Safety Comparison
Becton Dickinson & Co (BDX) and Johnson & Johnson (JNJ) are both in the Health Care sector, making them natural rivals for dividend investors. Both stocks offer similar yields — BDX at 2.36% and JNJ at 2.16%. Both stocks show similar dividend growth rates, each around 6.2% over the past five years. JNJ holds the edge in dividend safety with a "Safe" rating. BDX is a Dividend Aristocrat while JNJ is a Dividend King.
Key Metrics Comparison
| Metric | BDX | JNJ |
|---|
| Dividend Yield | 2.36% | 2.16% |
| Annual Dividend | $4.20 | $5.14 |
| 5-Year CAGR | 6.2% | 5.2% |
| Payout Ratio | 68% | 47% |
| Consecutive Years | 43 | 63 |
| Price | $177.39 | $243.53 |
Yield Comparison
Becton Dickinson & Co (BDX) currently yields 2.36%, which is solid for the broader market. That's 0.20% more than Johnson & Johnson (JNJ), which yields 2.16%. In dollar terms, BDX pays $4.20/share annually versus JNJ's $5.14/share.
Dividend Growth
Over the past five years, BDX has grown its dividend at a 6.2% CAGR compared to JNJ's 5.2%. BDX: Dividend growth has been steady, with a 3-year CAGR of 6.5% and a 5-year CAGR of 6.2% (10-year: 5.2%). 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
BDX's dividend safety is rated "Moderate." The payout ratio of 68% 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 BDX's 68%, suggesting more room for future increases.
Income Comparison
A $10,000 investment in BDX generates approximately $236/year in dividend income, compared to $216/year from JNJ — a difference of $20/year. At $100,000, that gap widens to $200/year.
Verdict
- Best for income: BDX
- Best for growth: BDX
- Best for safety: JNJ
Frequently Asked Questions
Which has a higher dividend yield, BDX or JNJ?
Becton Dickinson & Co (BDX) has a higher dividend yield of 2.36% compared to Johnson & Johnson (JNJ) at 2.16%.
Is BDX or JNJ a better dividend growth stock?
Becton Dickinson & Co has the stronger dividend growth with a 5-year CAGR of 6.2%, compared to Johnson & Johnson's 5.2%.
Which is safer for dividend income, BDX or JNJ?
Becton Dickinson & Co's dividend safety is rated "Moderate" while Johnson & Johnson is rated "Safe." The payout ratio of 68% 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 BDX vs JNJ generate?
A $10,000 investment in BDX generates approximately $236/year in dividends, while the same amount in JNJ generates about $216/year.
Is BDX or JNJ a Dividend Aristocrat?
Becton Dickinson & Co is a Dividend Aristocrat (43 years) and Johnson & Johnson is a Dividend King (63 years).
Which has a lower payout ratio, BDX or JNJ?
Johnson & Johnson has a lower payout ratio of 47% compared to Becton Dickinson & Co's 68%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
BDX vs JNJ: which is better for retirement income?
It depends on your priorities. BDX for current income, BDX for dividend growth, JNJ for safety. Many retirement investors hold both for diversification.
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