From Yahoo Finance · · 1m
JNJ Beats O for Long-Term Retirees
JNJ's 64-year dividend streak outperforms Realty Income's monthly payouts for retirees.
In brief
JNJ's 64-year dividend streak outperforms Realty Income's monthly payouts for retirees. Johnson & Johnson's dividend safety and total return growth make it better than Realty Income for long-term retirement portfolios. Originally reported by Yahoo Finance.
Current Yield Comparison
Realty Income offers 5.26% yield with monthly payments versus JNJ's 1.97% quarterly yield.
“Realty Income (O) pays a 5% monthly yield”
Dividend Durability
JNJ has 64 years of dividend increases and $21 billion in cash versus Realty Income's 115 quarterly increases.
“J&J is a Dividend King with 64 consecutive years of dividend increases”
Growth Trajectory
JNJ grew 54.35% over the past year versus Realty Income's 14.88% five-year return.
“JNJ is up 54.35% year to date”
Risk Profile
Realty Income has 7.9x debt/EBITDA and 65.7% non-investment-grade tenants.
“Realty Income's 7.9x net debt/EBITDA and 66% non-investment-grade tenants”
Long-Term Winner
JNJ's compound growth beats Realty Income for retirees with 20-year horizons.
“Johnson & Johnson is the better retirement-income holding for any retiree with a horizon longer than a couple of years”
Retirement Strategy
JNJ provides safer compounding for long-term portfolios versus monthly payouts.
“Frequency alone tells you nothing about dividend safety or total return”
What Happens Next
Retirees should prioritize JNJ's dividend safety over Realty Income's monthly cash flow.
“For everyone else planning to fund 15 or 20 years of retirement, jnj is the stronger long-term holding”
The bottom line
Johnson & Johnson's dividend safety and total return growth make it better than Realty Income for long-term retirement portfolios.
