Thursday, April 23, 2009

Dividend Increases Keep Coming: Johnson & Johnson & Kellogg

Not all dividend paying companies are reducing their dividend or forgoing dividend increases.

Today Johnson & Johnson (JNJ) announced a 6.52% increase in the company's quarterly dividend. The new quarterly dividend is 49 cents per share versus 46 cents per share paid in the same quarter last year. The estimated payout ratio is 40% based on 2010 estimated earnings of $4.86. The 5-year average payout ratio is 40%. The company carries an S&P Earnings & Dividend Quality Ranking of A+.

In addition to JNJ's announcement, Kellogg (K) stated they would be increasing the company's 3rd quarter 2009 dividend 10.29%. The new quarterly rate of 37.5 cents per share compares to 34 cents per share paid in the 3rd quarter of 2008. The estimated payout ratio is 48% based on 2010 estimated earnings of $3.10. The 5-year average payout ratio is 49%. The company carries an S&P Earnings & Dividend Quality Ranking of A.

(click table/chart to enlarge)

Johnson & Johnson and Kellogg dividend analysis table April 2009
Johnson & Johnson stock chart April 2009
Kellogg stock chart April 2009


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