Coca-Cola and Johnson & Johnson are two of the best-known Dividend Kings, companies that have raised their dividends every year for more than five decades. They share a reputation for reliability but come from very different industries.
Coca-Cola vs Johnson & Johnson: Two Dividend Kings
KO and JNJ have each raised their dividend for more than 50 years. Compare the businesses, sectors and what a long dividend streak does and doesn't mean.
At a glance
The Coca-Cola Company
KO
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Johnson & Johnson
JNJ
|
|
|---|---|---|
| Exchange | NYSE | NYSE |
| Sector | Consumer Staples | Health Care |
| Industry | Non-alcoholic beverages | Pharmaceuticals and medical technology |
| Founded | 1892 | 1886 |
| Headquarters | Atlanta, Georgia, USA | New Brunswick, New Jersey, USA |
| Regular dividend | Yes | Yes |
| Dividend lists | Dividend Aristocrat, Dividend King | Dividend Aristocrat, Dividend King |
| Full profile | Read the profile → | Read the profile → |
Price chart
Live data by TradingViewKey differences
Industry
Coca-Cola is a beverage company in consumer staples. Johnson & Johnson is a pharmaceutical and medical technology company in healthcare.
How they make money
Coca-Cola sells concentrates and syrups to bottlers and runs the brands. J&J sells prescription drugs, protected by patents, and medical devices to hospitals.
Main risks
For Coca-Cola: shifting tastes away from sugary drinks and currency swings. For J&J: patent expiries, legal liabilities and drug-pricing rules.
Credit quality
J&J is one of only two US companies, along with Microsoft, with a top AAA credit rating from S&P Global.
In common
Both pay quarterly, both have very long dividend records, and both are in the S&P 500 as well as the list of Dividend Aristocrats.
What to check before choosing
- Do you already own other consumer-staples or healthcare companies?
- How do their current payout ratios and yields compare?
- Which risks (patents and legal cases, or consumer tastes and currencies) are you more comfortable with?
This is general education, not a recommendation. Fees, yields and prices change, so check current figures with the issuer or your broker.
Frequently asked questions
Which is a safer dividend, KO or JNJ?
Both have outstanding records, but a streak is not a guarantee. Compare the current payout ratio, cash flow and debt of each.
Are KO and JNJ Dividend Kings?
Both have raised their dividend for more than 50 consecutive years, which is the usual Dividend King test.
Should I own both?
They are in different sectors, so together they add some diversification, but they are only two companies.
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