JNJ Is Due for A Dividend Increase in 2016

By | April 27, 2016
The goal of my DGI Portfolio is to grow money and build passive income by investing in companies that pay a stable and increasing dividend. One company that satisfies the criteria and is also a holding in the portfolio is Johnson & Johnson (NYSE:JNJ).
The stock currently pays a dividend of $0.75/quarter, or $3/annum for a current yield of 2.65% as of April 22, 2016. JNJ has a long history of paying dividends and consistently raising the amount every year. Below is a table of the past 5 years of dividend payments.

Ex/Eff Date    Cash Amount
2/19/2016    0.75
11/20/2015    0.75
8/21/2015    0.75
5/21/2015    0.75
2/20/2015    0.7
11/21/2014    0.7
8/22/2014    0.7
5/22/2014    0.7
2/21/2014    0.66
11/22/2013    0.66
8/23/2013    0.66
5/23/2013    0.66
2/22/2013    0.61
11/23/2012    0.61
8/24/2012    0.61
5/24/2012    0.61
2/24/2012    0.57
11/25/2011    0.57
8/26/2011    0.57
5/26/2011    0.57
Source: Nasdaq.com

Based on the previous pattern, JNJ should be raising their dividend again in May of this year. The last dividend was increased by 5 cents. If they can keep the same amount increase for this May, that would bring the dividend to $0.80/quarter, or $3.2/annum. Using the stock price of 113.34 on April 22, the new yield will be 2.82%.

What do you think will be the new dividend amount?

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