J&J boosts dividend to lift implied yield to above 2.5%

Johnson & Johnson said Tuesday it is raising its quarterly dividend by 6.6%, to $1.13 a share from $1.06 a share. The new dividend will be payable June 7 to shareholders of record on May 24. Based on Monday’s stock closing price of $177.66, the new annual dividend rate implies a dividend yield of 2.54%, which compares with the implied yield for the S&P 500 of 1.44%. J&J’s stock has gained 3.9% year to date through Monday, while the Dow Jones Industrial Average has slipped 5.3%.

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