JNJ vs PG: Dividend Yield, Growth & Safety Comparison
Johnson & Johnson (JNJ) from Health Care and PROCTER & GAMBLE Co (PG) from Consumer Staples offer different dividend profiles for income-focused portfolios. PG edges ahead on yield at 2.63% versus JNJ's 2.16%. For dividend growth, PG leads with a 5-year CAGR of 12.5% versus JNJ's 5.2%. JNJ holds the edge in dividend safety with a "Safe" rating. JNJ is a Dividend King with 63 years of consecutive increases.
Key Metrics Comparison
| Metric | JNJ | PG |
|---|
| Dividend Yield | 2.16% | 2.63% |
| Annual Dividend | $5.14 | $4.18 |
| 5-Year CAGR | 5.2% | 12.5% |
| Payout Ratio | 47% | 62% |
| Consecutive Years | 63 | 0 |
| Price | $243.53 | $160.56 |
Yield Comparison
PROCTER & GAMBLE Co (PG) currently yields 2.63%, which is solid for the broader market. That's 0.47% more than Johnson & Johnson (JNJ), which yields 2.16%. In dollar terms, PG pays $4.18/share annually versus JNJ's $5.14/share.
Dividend Growth
Over the past five years, PG has grown its dividend at a 12.5% 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%. PG: Dividend growth is accelerating — the 3-year CAGR of 21.6% exceeds the 5-year rate of 12.5% and the 10-year rate of 8.5%.
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. PG's dividend safety is rated "Moderate." The payout ratio of 62% is moderate. The dividend is currently covered by earnings but leaves less room for growth. Earnings cover the dividend 1.6x. JNJ's payout ratio of 47% is more conservative than PG's 62%, suggesting more room for future increases.
Income Comparison
A $10,000 investment in PG generates approximately $263/year in dividend income, compared to $216/year from JNJ — a difference of $47/year. At $100,000, that gap widens to $470/year.
Verdict
- Best for income: PG
- Best for growth: PG
- Best for safety: JNJ
Frequently Asked Questions
Which has a higher dividend yield, JNJ or PG?
PROCTER & GAMBLE Co (PG) has a higher dividend yield of 2.63% compared to Johnson & Johnson (JNJ) at 2.16%.
Is JNJ or PG a better dividend growth stock?
PROCTER & GAMBLE Co has the stronger dividend growth with a 5-year CAGR of 12.5%, compared to Johnson & Johnson's 5.2%.
Which is safer for dividend income, JNJ or PG?
Johnson & Johnson's dividend safety is rated "Safe" while PROCTER & GAMBLE Co is rated "Moderate." 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 62% is moderate. The dividend is currently covered by earnings but leaves less room for growth. Earnings cover the dividend 1.6x.
How much income does $10,000 in JNJ vs PG generate?
A $10,000 investment in JNJ generates approximately $216/year in dividends, while the same amount in PG generates about $263/year.
Is JNJ or PG a Dividend Aristocrat?
Johnson & Johnson is a Dividend King with 63 consecutive years of increases. PROCTER & GAMBLE Co does not currently qualify for aristocrat status.
Which has a lower payout ratio, JNJ or PG?
Johnson & Johnson has a lower payout ratio of 47% compared to PROCTER & GAMBLE Co's 62%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
JNJ vs PG: which is better for retirement income?
It depends on your priorities. PG for current income, PG for dividend growth, JNJ for safety. Many retirement investors hold both for diversification.
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