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Johnson & JohnsonXSWX:JNJ -1.82%76 5-Year Yield-on-Cost % is 1.29 as of Jul. 15, 2026, which is 62% below its 10-year median of 3.37. GuruFocus rates XSWX:JNJ with a GF Score™ of 76/100 and a GF Value™ of CHF154.50 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 515 Drug Manufacturers companies, Johnson & Johnson ranks better than 53.01% on this metric.
Johnson & Johnson's yield on cost for the quarter that ended in Mar. 2026 was 1.29.
The historical rank and industry rank for Johnson & Johnson's 5-Year Yield-on-Cost % or its related term are showing as below:
XSWX:JNJ'
s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 1.29 Med: 3.37 Max: 4.48
Current: 1.29
During the past 13 years, Johnson & Johnson's highest Yield on Cost was 4.48. The lowest was 1.29. And the median was 3.37.
XSWX:JNJ's 5-Year Yield-on-Cost % is ranked better than 53.01% of 515
companies
in the Drug Manufacturers industry
Industry Median: 2.25
vs XSWX:JNJ: 1.29
Johnson & Johnson (XSWX:JNJ) 5-Year Yield-on-Cost % Explanation
Of course the risk here is that the company may not raise its dividends as it did before. The key is to select the companies that can consistently raise its dividends. Usually companies with long history of raising dividends tend to do so.
Johnson & Johnson 5-Year Yield-on-Cost % Related Terms
XSWX:JNJ vs ABBV, MRK, AMGN: 5-Year Yield-on-Cost % Comparison
For the Drug Manufacturers - General subindustry, Johnson & Johnson's 5-Year Yield-on-Cost %, along with its competitors' market caps and 5-Year Yield-on-Cost % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Johnson & Johnson 5-Year Yield-on-Cost % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Johnson & Johnson's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where Johnson & Johnson's 5-Year Yield-on-Cost % falls into.
Johnson & Johnson 5-Year Yield-on-Cost % Calculation
Dividend Yield % and dividend growth of a stock is an important factor for income investors. But if company A raises its dividend constantly faster than company B, company A's future dividend yield might be much higher than Company B's even if their yields are the same now and their stock prices do not change.
Yield on Cost assumes that you buy and the stock today, and hold it for 5 years. If the company raises it dividends at the same rate as it did over the past 5 years, the dividends investors receive annually in 5 years relative to the stock price today.
Johnson & Johnson (XSWX:JNJ) has a 5-Year Yield-on-Cost % of 1.29 as of Jul. 15, 2026. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Johnson & Johnson and its competitors. This is 62% below median its historical median of 3.37. Over the past decade, Johnson & Johnson's 5-Year Yield-on-Cost % has ranged from 1.29 to 4.48. According to the industry distribution chart, Johnson & Johnson ranks #242 out of 515 companies in the Drug Manufacturers industry, placing it in the top 47%.
Is Johnson & Johnson's 5-Year Yield-on-Cost % too high?
Johnson & Johnson's current 5-Year Yield-on-Cost % of 1.29 is 62% below median its 10-year median of 3.37. Over the past 10 years, this metric has ranged from a low of 1.29 to a high of 4.48. The Drug Manufacturers industry median 5-Year Yield-on-Cost % is 2.25. Johnson & Johnson's value of 1.29 is 42.7% below this industry median. Based on the distribution chart, Johnson & Johnson ranks #242 out of 515 companies in the Drug Manufacturers industry, which is above the industry midpoint. Overall, Johnson & Johnson has a GF Score™ of 76/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Johnson & Johnson's 5-Year Yield-on-Cost % compare to ABBV and MRK?
According to the Drug Manufacturers industry distribution chart, Johnson & Johnson ranks #242 out of 515 companies for 5-Year Yield-on-Cost %. This puts Johnson & Johnson in the upper half of its industry. The industry median 5-Year Yield-on-Cost % is 2.25. Johnson & Johnson's value of 1.29 is 42.7% below this benchmark. Historically, Johnson & Johnson's own 5-Year Yield-on-Cost % has ranged from 1.29 to 4.48 over the past decade. While the company's 10-year median is 3.37 vs. the industry median of 2.25, Johnson & Johnson has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 5-Year Yield-on-Cost % for a Drug Manufacturers company?
The median 5-Year Yield-on-Cost % among Drug Manufacturers companies is 2.25, based on 515 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year Yield-on-Cost % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year Yield-on-Cost % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Johnson & Johnson's current 5-Year Yield-on-Cost % of 1.29 is 42.7% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 5-Year Yield-on-Cost % mean?
A high 5-Year Yield-on-Cost % can signal that a stock is expensive relative to its fundamentals. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Johnson & Johnson and its competitors. For the Drug Manufacturers industry, the median 5-Year Yield-on-Cost % is 2.25 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Johnson & Johnson's current 5-Year Yield-on-Cost % is 1.29, which is 62% below median its own 10-year median of 3.37. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Johnson & Johnson stock overvalued right now?
Based on GuruFocus' analysis, Johnson & Johnson (XSWX:JNJ) is currently considered Significantly Overvalued. The stock's GF Value™ is CHF154.50, compared to a current price of CHF205.10 — trading 32.8% above its estimated fair value. The current 5-Year Yield-on-Cost % is 1.29, which is 62% below median its 10-year median of 3.37 and 42.7% below the Drug Manufacturers industry median of 2.25. Johnson & Johnson's overall GF Score™ is 76/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 5-Year Yield-on-Cost % calculated?
5-Year Yield-on-Cost % is calculated from a company's financial statements. For Johnson & Johnson (XSWX:JNJ), the current 5-Year Yield-on-Cost % is 1.29 as of Jul. 15, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Johnson & Johnson (XSWX:JNJ) Overvalued in 2026?
Based on GuruFocus' analysis, Johnson & Johnson stock appears to be overvalued.
The current stock price of CHF205.10 is trading 32.8% above its estimated GF Value™ of CHF154.50.
GuruFocus considers Johnson & Johnson to be Significantly Overvalued.
Key valuation signals for XSWX:JNJ:
5-Year Yield-on-Cost %: 1.29 (62% below median its 10-year median of 3.37)
GF Value™: CHF154.50 vs. price of CHF205.10 (32.8% above fair value)
Industry Position: 42.7% below the Drug Manufacturers median (#242 of 515)
No single metric tells the full story. See the XSWX:JNJ stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Johnson & Johnson is the world's largest and most diverse healthcare firm. It has two divisions: innovative medicine and medtech. These now represent all of the company's sales following the divestment of the consumer business, Kenvue, in 2023. After restructurings in 2023-24, the drug division focuses on three main therapeutic areas: immunology, oncology, and neurology. Geographically, just over half of total revenue is generated in the United States.
76GF Score
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5-Year Yield-on-Cost % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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