Procter & Gamble Vs. Johnson & Johnson

That changed in 2021 though. Earlier, we showed how PG’s dividend increase was double Johnson & Johnson’s. Because of this, I’m calling this metric a draw!

Winner: Draw

Dividend Yield

Last, but definitely not least, the dividend yield. Dividend yield is never the first metric we review. Why? We want to make sure the company checks the other boxes of our stock screener before looking at the yield.  Yield should never drive an investment decision, as this could lead you to investing in a dividend that is not safe. Sure, a company could pay a 10% dividend. However, if the payout ratio is over 100%, its likely that dividend will be cut in the future.

The following chart shows the dividend yield’s for PG and JNJ:

Winner: Draw

Conclusion: Winner – Johnson & Johnson

Let’s tally the scorecards! Johnson & Johnson won two metrics outright while Procter & Gamble won one. The remainin three categories ended in a draw. the two metrics that Johnson & Johnson won in today’s analysis are critical metrics as well. Their price to earnings ratio is lower and the so is their dividend payout ratio. Both metrics are key components of our dividend stock screener, the tool we use to research all dividend stocks before we buy.

Both companies are great companies. Today though, we are raising the arm of Johnson & Johnson. The company is leaving the ring with the championship belt!

Going forward, I will continue to add 1 share of Johnson & Johnson to both my portfolio and my wife’s dividend stock portfolio. We discuss the purchase strategy in the linked article.

What are your thoughts about the two companies? Do you prefer Johnson & Johnson or Procter & Gamble? Would you continue adding 1 share of Johnson & Johnson each week if you were me?

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Disclaimer: I do not recommend any decision to the reader or any user, please consult your own research. Thank you.

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