Stock valuations in Johnson & Johnson (JNJ) have shown extreme rallies since the beginning of the year, and many dividend investors are wondering about whether or not it is time to take gains on long positions. In the current low-interest rate environment, the 2.53% dividend yield that is offered to those holding JNJ stock might seem highly attractive. But when we consider the fact that payout ratios are approaching extreme levels, we can see that the stock's commonly-watched dividend could be at risk if consumer spending drops within the macro environment. Looking ahead, we see limited growth drivers for the company and the extreme rallies that have been posted since the beginning of the year could lead to reversals relatively quickly if certain scenarios unfold. This ultimately means that dividend investors that are already long should consider selling the stock at current levels in order to maximize potential gains over the next year.

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