DOV vs JNJ: Dividend Comparison
Dividend data as of
DOVER Corp (DOV) from Industrials and Johnson & Johnson (JNJ) from Health Care offer different dividend profiles for income-focused portfolios. JNJ offers a significantly higher 2.16% yield compared to DOV's 0.90%, a gap of 1.26%. For dividend growth, JNJ leads with a 5-year CAGR of 5.2% versus DOV's 1.0%. Both stocks carry a "Safe" dividend safety rating. DOV is a Dividend Aristocrat while JNJ is a Dividend King.
Verdict
Yield Analysis
JNJ yields 1.26% more than DOV. In dollar terms, DOV pays $2.08/share vs JNJ's $5.14/share annually.
Dividend Growth
DOV: Dividend growth has been steady, with a 3-year CAGR of 1.0% and a 5-year CAGR of 1.0% (10-year: 4.5%).
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
DOV: The payout ratio of 26% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 3.8x.
JNJ: The payout ratio of 47% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 2.1x.
Estimated Annual Dividend Income
Based on current dividend yields. Actual income may vary.
What does $10,000 buy in DOV vs JNJ today?
At $231.16 per share, $10,000 buys about 43.3 shares of DOVER Corp (DOV). Each share pays $2.08 per year in dividends, so the position starts out generating roughly $90 per year — about $7 a month.
At $243.53 per share, $10,000 buys about 41.1 shares of Johnson & Johnson (JNJ). Each share pays $5.14 per year in dividends, so the position starts out generating roughly $211 per year — about $18 a month.
JNJ is the larger income stream from day one: $121 per year more on the same $10,000 invested.
What could $10,000 of DOV or JNJ income look like in 10 years?
DOVER Corp (DOV) has raised its dividend about 1.0% a year over the past five years. If that pace held, the $90 per year that $10,000 generates today at the current 0.90% yield would reach $99 per year by 2036 — a 1.0% yield on the original cost.
Johnson & Johnson (JNJ) has raised its dividend about 5.2% a year over the past five years. If that pace held, the $216 per year that $10,000 generates today at the current 2.16% yield would reach $359 per year by 2036 — a 3.6% yield on the original cost.
On those trailing rates, JNJ pays more in 2036: $359 versus $99 per year. The projection assumes each five-year growth rate persists and no dividends are reinvested — real payouts will differ.
When would DOV's dividend growth overtake JNJ's higher yield?
It doesn't, on the trailing numbers. Johnson & Johnson (JNJ) yields more today (2.16% vs 0.90%) and has also grown its dividend at least as fast (5.2% vs 1.0% a year over five years). Unless DOV accelerates its raises or JNJ stumbles, DOV never closes the income gap — JNJ wins on both current income and growth.
Can DOV and JNJ afford their dividends?
DOVER Corp (DOV) earns $7.98 per share against $2.08 paid out in dividends — 3.8x coverage (a 26% payout ratio).
Johnson & Johnson (JNJ) earns $11.03 per share against $5.14 paid out in dividends — 2.1x coverage (a 47% payout ratio).
DOV's wider coverage leaves more cushion if earnings dip. As a rule of thumb, coverage below about 1.5x (a payout ratio above ~65%) is where a dividend starts to look stretched — worth watching for JNJ if earnings weaken.
Which fits an early-retirement income portfolio better, DOV or JNJ?
For income you need right now, Johnson & Johnson (JNJ) leads: $100,000 invested today pays about $180 a month at the current 2.16% yield, versus $75 a month from DOVER Corp (DOV) at 0.90%.
JNJ also leads on dividend growth (5.2% vs 1.0% a year over five years), so the trailing numbers favor it on both fronts.
On consistency: DOV has raised its dividend 41 consecutive years; JNJ has raised its dividend 63 consecutive years.
Many income investors simply hold both — the mix pairs current yield with growth and spreads single-name risk. Whichever way you lean, dividends are never guaranteed; recheck the payout each quarter rather than setting and forgetting.
$10,000 with DRIP: projected annual income
If each holding keeps raising its dividend at its real 5-year rate and every payment is reinvested, a $10,000 position pays $109/yr in DOV vs $445/yr in JNJ by year 10.
Assumes dividends are reinvested at the current yield and grow at each holding's trailing 5-year dividend CAGR. A projection, not a prediction — no price appreciation modeled.
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