EHC vs JNJ: Which Is the Better Dividend Stock?
As of Nov 8, 2026, JNJ (Johnson & Johnson) screens as the stronger dividend stock, winning 5 of 8 head-to-head metrics. JNJ offers the higher yield at 1.94%, JNJ has the higher dividend-safety score, and EHC looks like the better value (its fair-value estimate is 24% below its share price).
Key facts: EHC vs JNJ
Data as of · Source: SmarterDividends data
- As of Nov 8, 2026, Johnson & Johnson (JNJ) has the higher forward dividend yield at 1.94%, versus 0.61% for Encompass Health Corporation (EHC).
- As of Nov 8, 2026, SmarterDividends grades EHC's dividend safety C (63/100) and JNJ's A (93/100).
- By SmarterDividends' count as of Nov 8, 2026, EHC has raised its dividend for 2 consecutive years and JNJ for 55.
- As of Nov 8, 2026, EHC pays out 12% of its earnings as dividends and JNJ pays out 80%.
- As of Nov 8, 2026, EHC's fair-value estimate is 24% below its share price and JNJ's fair-value estimate is 54% below its share price, so EHC looks like the better value of the two on SmarterDividends' blended model.
Cite this page
SmarterDividends, "EHC vs JNJ: Dividend Yield, Safety & Value Compared," updated Nov 8, 2026, https://smarterdividends.com/compare/ehc-vs-jnj
| Metric | EHC | JNJ |
|---|---|---|
| Forward yield | 0.61% | 1.94% |
| Annual dividend | $0.84 | $5.36 |
| Payout ratio | 12% | 80% |
| Years of growth | 2 yr | 55 yr |
| 5-yr dividend growth | -4.7% | 5.2% |
| 5-yr total return | 200% | 77% |
| Dividend safety score | 63 (C) | 93 (A) |
| Fair value estimate | $104.81 | $126.72 |
| Upside to fair value | -24% | -54% |
| Frequency | quarterly | quarterly |
| Market cap | $13.5B | $664.9B |
| P/E ratio | 22.0 | 41.9 |
Higher yield
JNJ
1.94%
Safer dividend
JNJ
Grade A
Faster growth
JNJ
5.2%
Better value
EHC
-24% upside
EHC vs JNJ — FAQ
Is EHC or JNJ a better dividend stock?
On the data, JNJ wins more head-to-head categories (5 vs 3). JNJ offers the higher yield (1.94%), while JNJ has the stronger dividend-safety score. The right pick depends on whether you prioritise income, safety or value.
Which has a higher dividend yield, EHC or JNJ?
JNJ has the higher forward dividend yield at 1.94%, versus 0.61% for EHC.
Is EHC or JNJ safer?
JNJ has the higher dividend-safety score (93/100 vs 63/100), reflecting stronger payout coverage and dividend-growth history.
Is EHC or JNJ better value right now?
As of Nov 8, 2026, EHC looks like the better value: its fair-value estimate is 24% below its share price (overvalued). For JNJ, its fair-value estimate is 54% below its share price.
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See more dividend stock comparisons · data refreshes daily · for informational purposes only, not investment advice.