Hello, my dears. Welcome to a new overview of upcoming ex-dividend dates and dividend ideas here on the TEV Blog. Like every week, I want to show you some stocks that will go ex-dividend in the next days. I’ll also review a few companies currently in investors’ focus or that have an attractive fundamental valuation. Additionally, I’ll give you some insights into my retirement portfolio and/or share my thoughts and experiences about individual companies with you. This week, we will discuss the ex-dividend of Johnson & Johnson.
Why yields are a simple way to screen companies
Dividends are a great thing. Even in bad stock market times, they provide a juicy cash flow per month. If you want to benefit from dividend payments as quickly as possible, you must pay attention to the ex-dividend dates. This date is the day on which shares are traded without their subsequent dividend value. Only if you owned the stocks on this day are you entitled to receive the dividend.
Usually, there are always exciting dividend companies that are worth a second look. And the dividend yield is an excellent way to get an initial overview of companies that may be worth further due diligence. To help you get started, at the end of each week, I will publish the ex-dividend dates for the coming week of individual companies here in the TEV blog.
Why I handpick and double-check the upcoming ex-dividend dates next week
I have recently noticed that many databases do not indicate the respective numbers and dates correctly. Spontaneous dividend cuts, in particular, are only partially taken into account, or in some cases, not at all. As a result, the value of such overviews dwindles enormously.
Therefore, I’ve decided to select individual companies by hand and check the dates and dividend yields on the companies’ websites, which means more work for me but increases this section’s value enormously, so it is worth it 🙂
Because I’ve been asked about it by some of the readers: I don’t decide my investments based on whether a company goes ex-dividend or not. This overview is simply a way to screen companies regularly. By double-checking the current dividend yields, I scan companies’ business development more or less once a quarter and see if anything significant has changed. In the end, however, comprehensive due diligence always decides whether I invest or not.
Ex-Dividend Calendar
As always, you’ll find some handpicked, exciting ex-dividend dates below.
| Company | Payout Date | Yield | In my retirement portfolio |
|---|---|---|---|
| Monday, November 23, 2020 | |||
| Amcor Plc (AMCR) | December 15.2020 | 3.5% | NO |
| Barnes Group Inc. (B) | December 10, 2020 | 1.41% | NO |
| Cable One (CABO) | December 11, 2020 | 0.50% | NO |
| Equifax (EFX) | December 15, 2020 | 0.90% | NO |
| Johnson & Johnson (JNJ) | December 08, 2020 | 2.75% | YES |
| Prudential Financial Inc. (PRU) | December 17, 2020 | 5.81% | NO |
| Tuesday, November 24, 2020 | |||
| Agnico Eagle Mines Ltd. (AEM) | December 15, 2020 | 2.08% | NO |
| Kinross Gold Corp. (KGC) | December 10, 2020 | 1.5% | NO |
| Loews (L) | January 09, 2020 | 0.58% | NO |
| Main Street Capital (MAIN) | December 15, 2020 | 7.86% | NO |
| Newmark Group Inc. (NMRK) | December 14, 2020 | 2.06% | NO |
| Ritchie Bros. Auctioneers (RBA) | December 16, 2020 | 1.36% | NO |
| Silvercorp Metals Inc. (SVM) | December 16, 2020 | 0.35% | NO |
| TransUnion (TRU) | December 10, 2020 | 0.31% | NO |
| Yum Brands (YUM) | December 11, 2020 | 1.79% | NO |
| Yum China Holdings Inc. (YUMC) | December 16, 2020 | 0.40% | NO |
| Wednesday, November 25, 2020 | |||
| AAON Inc. (AAON) | December 18, 2020 | 0.58% | NO |
| Fortune Brands Home & Security Inc. (FBHS) | December 16, 2020 | 1.13% | NO |
| Flowers Foods Inc. (FLO) | December 11, 2020 | 3.57% | NO |
| Fortive Corp. (FTV) | December 28, 2020 | 0.39% | NO |
| Herman Miller Inc. (MLHR) | January 15, 2021 | 1.66% | NO |
| Naspers (NPNJ) | December 10, 2020 | 0.18% | NO |
| NextEra Energy Inc. (NEE) | December 15, 2020 | 1.86% | NO |
| The Kraft Heinz Co. (KHC) | December 18, 2020 | 5.02% | NO |
| Thursday, November 26, 2020 | |||
| Imperial Brands (IMBBY) | December 31, 2020 | 9.00% | YES |
| Friday, November 27, 2020 | |||
| Assurant Inc. (AIZ) | December 21, 2020 | 1.96% | NO |
| Atmos Energy Corp. (ATO) | December 14, 2020 | 2.63% | NO |
| Barrick Gold Corp. (GOLD) | December 15, 2020 | 1.49% | NO |
| Bank of Hawaii Corp. (BOH) | December 14, 2020 | 3.59% | NO |
| Brookfield Asset Management Inc. (BAM) | December 31, 2020 | 1.18% | NO |
| Boralex (BRLX ) | December 15, 2020 | 2.14% | NO |
| Cameco Corp. (CCJ) | December 15, 2020 | 0.61% | NO |
| Crane Co. (CR) | December 09, 2020 | 2.64% | NO |
| Dominion Energy Inc. (D) | December 20, 2020 | 3.16% | NO |
| Dover Corp. (DOV) | December 14, 2020 | 1.59% | NO |
| Dow Inc. (DOW) | December 11, 2020 | 5.06% | NO |
| Energizer (ENR) | December 18, 2020 | 2.90% | NO |
| Estée Lauder (EL) | December 15, 2020 | 0.88% | NO |
| Newell Brands Inc. (NWL) | December 15, 2020 | 4.51% | NO |
| Power Integrations Inc. (POWI) | December 31, 2020 | 0.64% | NO |
| Tennant Co. (TNC) | December 15, 2020 | 1.39% | NO |
| Tetra Tech Inc. (TTEK) | December 11, 2020 | 0.56% | NO |
| Union Pacific Corp. (UNP) | December 30, 2020 | 1.90% | NO |
| Voya Financial Inc. (VOYA) | December 28, 2020 | 1.04% | NO |
| Xperi Holding Corp. (XPER) | December 21, 2020 | 1.08% | NO |
Should I buy more Johnson & Johnson shares?
During the Corona crisis, I finally bought shares of Johnson & Johnson in two tranches. I would have liked them to have fallen a little more sharply like many other shares, but that was not quite the case. Conversely, this shows how defensive the company is, and this is also a strength that is particularly important for risk-averse investors.
Johnson & Johnson is a globally active and multinational company in healthcare products and medical devices. The product range includes such well-known brands as Penaten Creme or Neutrogena Shampoo and health care products.
Overall, I believe that Johnson & Johnson fits well into any conservative long-term equity portfolio. Below you will find some considerations.
Johnson & Johnson was a solid investment case in the past
Over the last twenty years, the purchase of USD 1000 worth of shares would have yielded a return of 272.8 percent. Measured against the initial investment, 84 percent of this would have been in the form of dividends. The yield on cost would be a respectable 7.8 percent for investors. It is also expected that the dividend will continue to grow in the coming years. These are not moon yields, but Johnson & Johnson is also not an exciting fantasy company, but an excellent, highly profitable business whose investors want to profit from the business and farsighted management in the long term.
Is Johnson & Johnson growing?
There is little to suggest that the company will not grow further in the future. Johnson & Johnson is, in fact, an extremely reliable and reliably growing company.
In 1990 the company reached the following key figures:
- Revenue: USD 11,232 billion
- EPS per share: USD 0.43
- FCF per share: USD 0.31
- Operating CF per share: USD 0.62
- Gross margin: 64.95 percent
- Operating margin: 15.37 percent
- Net margin: 10.18 percent
The analysts expect the following figures for the fiscal year 2020:
- Revenue: USD 80,857 billion
- EPS per share: USD 7.20
- FCF per share: USD 4.98
- Operating CF per share: USD 8.31
- Gross margin: 66.32 percent
- Operating margin: 27.99 percent
- Net margin: 21.01 percent
Analysts expect the following figures for the fiscal year 2022:
- Revenue: USD 92,547 billion
- EPS per share: USD 8.91
- FCF per share: USD 8.94
- Operating CF per share: USD 10.99
- Operating margin: 32.7 percent
- Net margin: 27.8 percent
Below you can see the development of profits and cash flows of the company, which go like a line from bottom left to top right (I love it!)
If you look at the numbers, it is precisely what all long term investors want. A stable growing business. You should note that not only the profit per share has increased. For example, share buybacks may have artificially inflated profits. But Johnson & Johnson has also increased revenue, and the growth there has not harmed profitability.
On the contrary, margins have also risen sharply. The operating margin, for example, has almost doubled since 1990. It is expected to increase even further in the coming years. The same applies to the net margin, which will almost triple by 2022 compared to 1990.
Does Johnson and Johnson pay dividends?
Hell yeah, it does! Johnson & Johnson has increased its dividend every year for 58 years, making it one of the illustrious dividend aristocrats. The current dividend yield is 2.76 percent. That is about the average of the last years, as you can see in the chart below. Johnson & Johnson has its ex-dividend date on 23. November 2020.
On average, Johnson & Johnson has increased payouts by 6 percent per year over the last ten years. Additionally, there is financial leeway for further hikes. With a payout ratio of approximately 50 percent, there is sufficient room to increase the dividend in the coming years further. Rising profits and cash flows will also fundamentally enable Johnson & Johnson to maintain its growth rate. So I am optimistic here, and I think Johnson & Johnson is a good idea for dividend investors.
Is Johnson & Johnson undervalued?
The question is not easy to answer. Currently, the company is probably slightly overvalued. But if you look a few years ahead, the expected results will show a good upside potential. Particularly in the current market environment, companies often only grow into fair valuation, which is also the case with Johnson & Johnson. Measured against the expected adjusted profit at the end of 2022, you could have an annual yield of almost 9 percent, which is above the average return of the last 20 years (see above).
Time to do your due diligence
Has a company caught your interest? Attractive dividend yields should not be the only reason to buy shares of a company. Instead, you must carry out careful due diligence before every purchase. The Internet offers you excellent opportunities in this respect.
My analyses here on the TEV Blog are an excellent way to start (click here). You can also contact me here or ask the community in the comments if they can help with your due diligence.
Otherwise, I use tools like those from DividendStocks.Cash and Seeking Alpha to do further research. You can also find me and my analyses on these platforms. We also have a small but lovely group on Facebook that you can join. We share there only fundamental analyses of companies from various sources. So there is no spamming or anything like that.
If you don’t want to miss any new articles, you can easily follow me on
or Twitter.
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That said, feel free to let us know if I have overlooked an attractive stock or you know of a stock that is particularly attractive and where the ex-dividend date is coming up.
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