JNJ vs WMT: Dividend Yield, Growth & Safety Comparison
Johnson & Johnson (JNJ) from Health Care and Walmart Inc. (WMT) from Consumer Staples offer different dividend profiles for income-focused portfolios. JNJ offers a significantly higher 2.16% yield compared to WMT's 0.72%, a gap of 1.44%. For dividend growth, WMT leads with a 5-year CAGR of 6.4% versus JNJ's 5.2%. Both stocks carry a "Safe" dividend safety rating. JNJ is a Dividend King while WMT is a Dividend Aristocrat.
Key Metrics Comparison
| Metric | JNJ | WMT |
|---|
| Dividend Yield | 2.16% | 0.72% |
| Annual Dividend | $5.14 | $0.91 |
| 5-Year CAGR | 5.2% | 6.4% |
| Payout Ratio | 47% | 32% |
| Consecutive Years | 63 | 43 |
| Price | $243.53 | $133.79 |
Yield Comparison
Johnson & Johnson (JNJ) currently yields 2.16%, which is solid for the broader market. That's 1.44% more than Walmart Inc. (WMT), which yields 0.72%. In dollar terms, JNJ pays $5.14/share annually versus WMT's $0.91/share.
Dividend Growth
Over the past five years, WMT has grown its dividend at a 6.4% 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%. WMT: Dividend growth is accelerating — the 3-year CAGR of 11.2% exceeds the 5-year rate of 6.4% and the 10-year rate of 3.9%.
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. WMT's dividend safety is rated "Safe." The payout ratio of 32% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 3.1x. WMT's payout ratio of 32% 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 $72/year from WMT — a difference of $144/year. At $100,000, that gap widens to $1440/year.
Verdict
- Best for income: JNJ
- Best for growth: WMT
- Best for safety: WMT
Frequently Asked Questions
Which has a higher dividend yield, JNJ or WMT?
Johnson & Johnson (JNJ) has a higher dividend yield of 2.16% compared to Walmart Inc. (WMT) at 0.72%.
Is JNJ or WMT a better dividend growth stock?
Walmart Inc. has the stronger dividend growth with a 5-year CAGR of 6.4%, compared to Johnson & Johnson's 5.2%.
Which is safer for dividend income, JNJ or WMT?
Johnson & Johnson's dividend safety is rated "Safe" while Walmart Inc. 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 32% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 3.1x.
How much income does $10,000 in JNJ vs WMT generate?
A $10,000 investment in JNJ generates approximately $216/year in dividends, while the same amount in WMT generates about $72/year.
Is JNJ or WMT a Dividend Aristocrat?
Johnson & Johnson is a Dividend King (63 years) and Walmart Inc. is a Dividend Aristocrat (43 years).
Which has a lower payout ratio, JNJ or WMT?
Walmart Inc. has a lower payout ratio of 32% compared to Johnson & Johnson's 47%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
JNJ vs WMT: which is better for retirement income?
It depends on your priorities. JNJ for current income, WMT for dividend growth, WMT for safety. Many retirement investors hold both for diversification.
JNJ Dividend Analysis | WMT Dividend Analysis | All Comparisons | Comparison Tool