JNJ vs LLY: Dividend Yield, Growth & Safety Comparison
Johnson & Johnson (JNJ) and ELI LILLY & Co (LLY) are both in the Health Care sector, making them natural rivals for dividend investors. JNJ offers a significantly higher 2.16% yield compared to LLY's 0.59%, a gap of 1.57%. For dividend growth, LLY leads with a 5-year CAGR of 23.8% versus JNJ's 5.2%. Both stocks carry a "Safe" dividend safety rating. JNJ is a Dividend King while LLY is a Dividend Contender.
Key Metrics Comparison
| Metric | JNJ | LLY |
|---|
| Dividend Yield | 2.16% | 0.59% |
| Annual Dividend | $5.14 | $6.00 |
| 5-Year CAGR | 5.2% | 23.8% |
| Payout Ratio | 47% | 26% |
| Consecutive Years | 63 | 11 |
| Price | $243.53 | $1045.09 |
Yield Comparison
Johnson & Johnson (JNJ) currently yields 2.16%, which is solid for the broader market. That's 1.57% more than ELI LILLY & Co (LLY), which yields 0.59%. In dollar terms, JNJ pays $5.14/share annually versus LLY's $6.00/share.
Dividend Growth
Over the past five years, LLY has grown its dividend at a 23.8% CAGR compared to JNJ's 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%. LLY: Dividend growth is slowing — the 3-year CAGR of 15.2% trails the 5-year rate of 23.8% and the 10-year rate of 16.4%.
Dividend Safety
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. LLY'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. LLY'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 $59/year from LLY — a difference of $157/year. At $100,000, that gap widens to $1570/year.
Verdict
- Best for income: JNJ
- Best for growth: LLY
- Best for safety: LLY
Frequently Asked Questions
Which has a higher dividend yield, JNJ or LLY?
Johnson & Johnson (JNJ) has a higher dividend yield of 2.16% compared to ELI LILLY & Co (LLY) at 0.59%.
Is JNJ or LLY a better dividend growth stock?
ELI LILLY & Co has the stronger dividend growth with a 5-year CAGR of 23.8%, compared to Johnson & Johnson's 5.2%.
Which is safer for dividend income, JNJ or LLY?
Johnson & Johnson's dividend safety is rated "Safe" while ELI LILLY & Co is rated "Safe." The payout ratio of 47% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 2.1x. The payout ratio of 26% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 3.8x.
How much income does $10,000 in JNJ vs LLY generate?
A $10,000 investment in JNJ generates approximately $216/year in dividends, while the same amount in LLY generates about $59/year.
Is JNJ or LLY a Dividend Aristocrat?
Johnson & Johnson is a Dividend King (63 years) and ELI LILLY & Co is a Dividend Contender (11 years).
Which has a lower payout ratio, JNJ or LLY?
ELI LILLY & Co 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.
JNJ vs LLY: which is better for retirement income?
It depends on your priorities. JNJ for current income, LLY for dividend growth, LLY for safety. Many retirement investors hold both for diversification.
JNJ Dividend Analysis | LLY Dividend Analysis | All Comparisons | Comparison Tool