DOV vs JNJ: Dividend Yield, Growth & Safety Comparison
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.
Key Metrics Comparison
| Metric | DOV | JNJ |
|---|
| Dividend Yield | 0.90% | 2.16% |
| Annual Dividend | $2.08 | $5.14 |
| 5-Year CAGR | 1.0% | 5.2% |
| Payout Ratio | 26% | 47% |
| Consecutive Years | 41 | 63 |
| Price | $231.16 | $243.53 |
Yield Comparison
Johnson & Johnson (JNJ) currently yields 2.16%, which is solid for the broader market. That's 1.26% more than DOVER Corp (DOV), which yields 0.90%. In dollar terms, JNJ pays $5.14/share annually versus DOV's $2.08/share.
Dividend Growth
Over the past five years, JNJ has grown its dividend at a 5.2% CAGR compared to DOV's 1.0%. 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's dividend safety is rated "Safe." The payout ratio of 26% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 3.8x. 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. DOV's payout ratio of 26% is more conservative than JNJ's 47%, suggesting more room for future increases.
Income Comparison
A $10,000 investment in JNJ generates approximately $216/year in dividend income, compared to $90/year from DOV — a difference of $126/year. At $100,000, that gap widens to $1260/year.
Verdict
- Best for income: JNJ
- Best for growth: JNJ
- Best for safety: DOV
Frequently Asked Questions
Which has a higher dividend yield, DOV or JNJ?
Johnson & Johnson (JNJ) has a higher dividend yield of 2.16% compared to DOVER Corp (DOV) at 0.90%.
Is DOV or JNJ a better dividend growth stock?
Johnson & Johnson has the stronger dividend growth with a 5-year CAGR of 5.2%, compared to DOVER Corp's 1.0%.
Which is safer for dividend income, DOV or JNJ?
DOVER Corp's dividend safety is rated "Safe" while Johnson & Johnson is rated "Safe." The payout ratio of 26% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 3.8x. 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 DOV vs JNJ generate?
A $10,000 investment in DOV generates approximately $90/year in dividends, while the same amount in JNJ generates about $216/year.
Is DOV or JNJ a Dividend Aristocrat?
DOVER Corp is a Dividend Aristocrat (41 years) and Johnson & Johnson is a Dividend King (63 years).
Which has a lower payout ratio, DOV or JNJ?
DOVER Corp has a lower payout ratio of 26% compared to Johnson & Johnson's 47%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
DOV vs JNJ: which is better for retirement income?
It depends on your priorities. JNJ for current income, JNJ for dividend growth, DOV for safety. Many retirement investors hold both for diversification.
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