This dividend increase is very,very disappointing and today's market price reaction is justified. With the lack of stock appreciation over the last four years mangement should have held to the historic annual dividend increase of approximately 15%. I've held JnJ stock since 1982 and have been in the Drip plan almost as long, obviously I have many,many shares.This stock performed extemely well up till 2003, since then only dividend have been above expectations and one of the reason for sticking with it. Moreover, I was hoping for a breakout year to catch up on previously lost returns. However, with the market at all time highs and JnJ struggling to see $65 I'm concerned that we JnJ shareholders have missed another market upswing opportunity and our invest will be flat going forward for the short to medium term. With so many great companies to invest in that have both appreciation and dividend returns the last 4 years from a JnJ shareholder ROI position have been disappointing. I've supported the JnJ business model and management for over 25 years.Sorry to say,I'll take my dividends in June but will begin selling shares versus accumulating. I'll contine to hold a postion in JnJ as a long term investment but at an ever smaller percentage of my portfolio. I will sell into any upcoming rallies. Too many other choices for better ROI. Best of luck to all.
I agree, as a shareholder for over a decade, this is the smallest percentage increase I can remember. Compounded dividends are a huge part of the total return you get from JNJ. These clowns must be saving their cash for another dilutive purchase. The market has spoken and doesn't like this move.
It really won't matter much to the retail investors due to their small shareholdings individually, but the institutions which rely heavily on dividend increases, especially in value and blue chip funds, will not be impressed by the board's miserly increase.
Down half a buck already, will be interesting to see where JNJ ends the day on this news, especially in view of IBM's huge dividend increase and buyback announced earlier in the week.