Johnson & Johnson (JNJ) will increase its quarterly dividend by 5.0 percent to $1.06 per share in 2021. This follows a dividend hike of 6.3 percent to $1.01 per share in 2020. This also marks the 59th consecutive year of annual dividend increases by the Dividend Aristocrat.
The increased dividend is payable on June 8, 2021 to shareholders of record as of the close of business on May 25, 2021. The ex-dividend date is May 24, 2021. A new annualized dividend rate of $4.24 per share yields 2.5% at a stock price of $166.48. With a new estimated annual dividend payment to shareholders of $11.2 billion, JNJ is one of the biggest dividend payers in the United States and worldwide.
"Despite a year of unprecedented disruption, Johnson & Johnson remained committed to its established financial principles that strengthen our ability to drive long-term value for stakeholders. In recognition of our notable 2020 results, strong financial position and confidence in the future of Johnson & Johnson, the Board of Directors has voted to increase the quarterly dividend for the 59th consecutive year," said Alex Gorsky, Chairman and Chief Executive Officer of the company in today's press release announcing this dividend hike.
Johnson & Johnson is engaged in the research and development, manufacture and sale of a broad range of products in the health care field. The company's three business segments are: Consumer, Pharmaceutical and Medical Devices. Johnson & Johnson is a holding company with operating companies conducting business worldwide. The company was incorporated in the State of New Jersey in 1887. Johnson & Johnson has paid a dividend every year to shareholders since 1944.