Johnson & Johnson dividend: cash flow and yield
Johnson & Johnson's dividend is forecast to rise from $5.44 per share to $5.77 in the base case. Johnson & Johnson generated $19,536 million of free cash flow in 2025, while its large shareholder payments left little annual surplus for acquisitions.
How much does Johnson & Johnson pay per share?
Dividends rise from $5.44 per share to $5.77 in the base case, near the latest 3.1% increase. The bear case holds $5.36 throughout, a pause rather than a cut. The bull case reaches $5.92 because stronger cash generation permits faster increases. J&J's 64-year record of consecutive increases and 2026 free-cash-flow guidance support continued growth, but talc payments and debt limit confidence.
| October 2027 | October 2028 | October 2029 | |
|---|---|---|---|
| Earnings | 29,992 (26,520 / 30,738) | 31,275 (26,625 / 33,696) | 32,665 (26,705 / 36,500) |
| Shares (millions) | 2,411 (2,414 / 2,400) | 2,412 (2,418 / 2,388) | 2,414 (2,422 / 2,373) |
| Dividends per share | 5.44 (5.36 / 5.50) | 5.60 (5.36 / 5.70) | 5.77 (5.36 / 5.92) |
| Price to earnings | 19.00 (16.00 / 22.00) | 19.00 (14.00 / 24.00) | 19.00 (13.00 / 25.00) |
Is Johnson & Johnson's dividend covered by its cash?
Profit records accounting income; cash flow records money collected and paid. J&J’s operating cash flow was $24,530 million in 2025, while free cash flow after capital spending was $19,536 million. A sale may be recorded before the customer pays, and inventory may consume cash before it is sold.
Dividends distribute cash to owners, while buybacks purchase shares and can increase each remaining share’s claim on future earnings. J&J’s large shareholder payments left little annual surplus for acquisitions. That matters because acquisitions still required substantial cash, while sales of businesses and assets supplied much less.
| 2025 | 2024 | 2023 | Jan 2023 | Jan 2022 | |
|---|---|---|---|---|---|
| Free cash flow | 19,536 | 19,668 | |||
| − Dividends paid | 12,381 | 11,823 | 11,770 | 11,682 | 11,032 |
| − Share buybacks | 5,953 | 2,432 | 5,054 | 6,035 | 3,456 |
| = Free cash flow not paid out | 1,202 | 5,413 | |||
| Paid out, % of free cash flow | 93.8% | 72.5% |
What this means. Johnson & Johnson's own net debt is slightly different because it rounds its numbers, while our calculation uses the amounts shown.
What is Johnson & Johnson's dividend yield against its price?
At $248.61, shareholders value J&J’s equity at $599,125 million. Enterprise value is $627,403 million because it adds net debt to the equity value. The difference is like buying a house while taking responsibility for its mortgage: the shares belong to investors, but the operating business must also support lenders. The EV-to-revenue multiple therefore values the whole business, not merely the stock.
Finally, J&J’s 3.3% free-cash-flow yield is not all available for dividends. Debt repayment, acquisitions, research, and legal settlements compete for that cash. The proposed $5.5 billion talc resolution could require as much as $3 billion in 2027, so valuation must move from today’s measures to the company’s history.
| Today (Oct 14, 2026) | |
|---|---|
| Share price | 248.61 |
| Free cash flow yield (calculated) | 3.3% |
| Dividend yield (calculated) | 2.2% |
What this means. The share price is from the market's close on October 13, even though the table is dated October 14.