JNJ vs XOM: Dividend Yield, Growth & Safety Comparison
Johnson & Johnson (JNJ) from Health Care and Exxon Mobil Corp (XOM) from Energy offer different dividend profiles for income-focused portfolios. XOM edges ahead on yield at 2.64% versus JNJ's 2.16%. For dividend growth, XOM leads with a 5-year CAGR of 11.2% versus JNJ's 5.2%. Both stocks carry a "Safe" dividend safety rating. JNJ is a Dividend King while XOM is a Dividend Aristocrat.
Key Metrics Comparison
| Metric | JNJ | XOM |
|---|
| Dividend Yield | 2.16% | 2.64% |
| Annual Dividend | $5.14 | $4.00 |
| 5-Year CAGR | 5.2% | 11.2% |
| Payout Ratio | 47% | 60% |
| Consecutive Years | 63 | 42 |
| Price | $243.53 | $148.59 |
Yield Comparison
Exxon Mobil Corp (XOM) currently yields 2.64%, which is solid for the broader market. That's 0.48% more than Johnson & Johnson (JNJ), which yields 2.16%. In dollar terms, XOM pays $4.00/share annually versus JNJ's $5.14/share.
Dividend Growth
Over the past five years, XOM has grown its dividend at a 11.2% 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%. XOM: Dividend growth is slowing — the 3-year CAGR of 4.3% trails the 5-year rate of 11.2% and the 10-year rate of 6.6%.
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. XOM's dividend safety is rated "Safe." The payout ratio of 60% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 1.7x. JNJ's payout ratio of 47% is more conservative than XOM's 60%, suggesting more room for future increases.
Income Comparison
A $10,000 investment in XOM generates approximately $264/year in dividend income, compared to $216/year from JNJ — a difference of $48/year. At $100,000, that gap widens to $480/year.
Verdict
- Best for income: XOM
- Best for growth: XOM
- Best for safety: JNJ
Frequently Asked Questions
Which has a higher dividend yield, JNJ or XOM?
Exxon Mobil Corp (XOM) has a higher dividend yield of 2.64% compared to Johnson & Johnson (JNJ) at 2.16%.
Is JNJ or XOM a better dividend growth stock?
Exxon Mobil Corp has the stronger dividend growth with a 5-year CAGR of 11.2%, compared to Johnson & Johnson's 5.2%.
Which is safer for dividend income, JNJ or XOM?
Johnson & Johnson's dividend safety is rated "Safe" while Exxon Mobil Corp 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 60% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 1.7x.
How much income does $10,000 in JNJ vs XOM generate?
A $10,000 investment in JNJ generates approximately $216/year in dividends, while the same amount in XOM generates about $264/year.
Is JNJ or XOM a Dividend Aristocrat?
Johnson & Johnson is a Dividend King (63 years) and Exxon Mobil Corp is a Dividend Aristocrat (42 years).
Which has a lower payout ratio, JNJ or XOM?
Johnson & Johnson has a lower payout ratio of 47% compared to Exxon Mobil Corp's 60%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
JNJ vs XOM: which is better for retirement income?
It depends on your priorities. XOM for current income, XOM for dividend growth, JNJ for safety. Many retirement investors hold both for diversification.
JNJ Dividend Analysis | XOM Dividend Analysis | All Comparisons | Comparison Tool