Want $1,000 in Dividend Income? Here's How Much You'd Have to Invest in Johnson & Johnson Stock
Johnson Johnson (NYSE: JNJ) is dividend royalty. The healthcare behemoth has increased its dividend payment for 62 straight years. That puts it in the elite group of dividend Kings, companies with 50 or more years of consecutive annual dividend growth.
The healthcare stock also stands out for its higher dividend yield. With a nearly 3.3% forward dividend yield, an investment in Johnson & Johnson would generate more than double the dividend income of a similar investment in an S 500 index fund (a roughly 1.3% trailing-12-month dividend yield).
Even at that much higher rate, you'd still need to invest a sizable amount of money to collect $1,000 of annual dividend income from Johnson Johnson. At the healthcare giant's current payment rate of $1.24 per share quarterly ($4.96 annualized), you'd need to own about 202 shares of Johnson Johnson to earn $1,000 of annual dividend income ($1001.92 to be precise). With shares of Johnson Johnson recently trading at around $153 apiece, you'd need to invest about $31,000 into its stock to collect $1,000 in annual dividend income.
Source Fool.com
