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Johnson & Johnson
🇺🇸 JNJ · NYSE/NASDAQ
Healthcare
Price at analysis: USD 254.42 Current price: USD 253.59 * updated every night
Scores
Key Metrics
Powered by EODHDP/E (TTM)
38.6
P/E (Price-to-Earnings)Shows how much investors pay for each $1 of profit. We display the TTM P/E (Trailing Twelve Months) which uses actual earnings from the last 4 quarters. This is more reliable than Forward P/E which uses analyst estimates.
Calculation: 254.42 ÷ 6.59 = 38.6
TTM period through: 2026-09-30
Forward P/E (estimated): 21.0
Based on analyst estimates
Reference: Provider P/E (Trailing): 38.4
ROE
25.7%
ROE (Return on Equity)A profitability measure: how much profit is generated from shareholders’ equity. Higher isn’t always better if it comes from high debt.
EV/EBITDA
19.9x
EV/EBITDAA valuation ratio that compares total business value (including debt) to EBITDA. Lower can mean cheaper, but context matters.
Dividend Summary
Powered by EODHDDividend Yield (Fwd)
2.29%
TTM: 2.08%
Dividend YieldThe Forward yield (Fwd) shows the next announced annual dividend / current price — what you'd earn going forward. The Trailing yield (TTM) in the tooltip shows dividends actually paid in the last 12 months. Forward is shown as primary because it reflects the company's current commitment to shareholders.
Forward Yield (estimated): 2.29%
Trailing Yield (TTM, last 12 months): 2.08%
Payout Ratio (Fwd)
81.3%
TTM: 46.2%
Payout RatioDividends as a percentage of earnings. The Forward payout (Fwd) uses the announced dividend divided by actual past earnings (TTM) — it tells you if the company can afford what it promised. Very high payouts can be risky, especially if profits fall.
Announced dividend / actual earnings (TTM)
Payout (Fwd): 81.3%
Payout (TTM): 46.2%
Cash Flow Payout (TTM): 50.5%
FCF Coverage (TTM): 1.59x
Growth Streak
8 yrs
Consec. increases
Div. Growth (5Y)
5.2%
Dividend History
EODHD Dividends API| Status | Type | Decl. Date | Ex-Div Date | Pay Date | Currency | Amount |
|---|---|---|---|---|---|---|
| Forecast* | Quarterly | — | 25 Aug 2027 | — | USD | 1.34 |
| Forecast* | Quarterly | — | 26 May 2027 | — | USD | 1.34 |
| Forecast* | Quarterly | — | 24 Feb 2027 | — | USD | 1.3 |
| Declared | Quarterly | 13 Oct 2026 | 24 Nov 2026 | 08 Dec 2026 | USD | 1.34 |
| Paid | Quarterly | 15 Jul 2026 | 25 Aug 2026 | 08 Sep 2026 | USD | 1.34 |
| Paid | Quarterly | 14 Apr 2026 | 26 May 2026 | 09 Jun 2026 | USD | 1.34 |
| Paid | Quarterly | 02 Jan 2026 | 24 Feb 2026 | 10 Mar 2026 | USD | 1.3 |
| Paid | Quarterly | 14 Oct 2025 | 25 Nov 2025 | 09 Dec 2025 | USD | 1.3 |
* Extrapolated from past dividend history. Not an official announcement — treat as an estimate, not a confirmed date or amount.
Summary
Johnson & Johnson remains a highly defensive healthcare juggernaut with an elite balance sheet and an unmatched history of dividend increases. However, trading at a steep P/E near 39x and a dividend yield near 2.1%, it currently offers an unappealing entry point for dividend-focused portfolios. Existing holders should maintain their positions to compound quality, while prospective buyers should keep it on their watch list for a more attractive valuation.
Sector Context
Johnson & Johnson operates as a diversified healthcare giant focusing on Innovative Medicine and MedTech following its recent spin-off of consumer health unit Kenvue. While the healthcare sector boasts highly defensive characteristics and recurring revenues, pharmaceutical patent cliffs and regulatory pricing controls (such as the U.S. Inflation Reduction Act) require massive scale and persistent R&D investment to navigate successfully.
📊 Strategy Analysis
- • Elite dividend consistency with an unparalleled 64-year history of consecutive annual dividend increases
- • Robust financial stability evidenced by a low Net Debt/EBITDA ratio of 0.7x and a strong ROE of 25.7%
- • Solid cash flow coverage with a Cash Flow Payout of 50.4% and FCF dividend coverage of 1.59x, ensuring distribution safety
⚠ What to Watch
- • Highly stretched valuation with a trailing P/E of 38.59x, trading significantly above the target DGI range of 8-15x
- • Unattractive starting forward dividend yield of 2.11%, failing to provide meaningful immediate income
- • Ongoing structural headwinds from impending patent cliffs on major blockbusters (e.g., Stelara) and margin-compressing Medicare IRA pricing
📊 Historical Trends (10 Years)
Powered by EODHDThese charts show how key metrics have evolved over the past decade, helping you identify if the company is improving or deteriorating.
Debt Evolution (Net Debt / EBITDA)
Lower values are better. A declining trend indicates the company is reducing its debt (deleveraging).
Revenue & Earnings Growth
Consistent growth in revenueRevenue
The money a company brings in from selling its products or services. It’s the top line before costs. (blue) and earningsEarnings (Profit)
What’s left after expenses. Positive earnings mean the business made a profit; negative means a loss. (green) indicates a healthy business. Look for upward trends and recoveries after temporary dips.
Dividend Sustainability (FCF vs Dividends Paid)
Free cash flowFree Cash Flow
Cash left after the company pays for running the business and maintaining it. Often used to fund dividends, pay debt, or buy back shares. (FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., blue) should cover dividends paidDividends Paid
Cash the company paid out to shareholders. It’s not guaranteed and can change over time. (green). If dividends consistently exceed FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., the dividend may be at risk.
Analysis date: 2026-10-17
Disclaimer: This information is for educational purposes only. Not financial advice.