Johnson & Johnson is a dividend stalwart. The recent dividend raise led me to question whether this was a one-time event or the beginning of lower expectations.

My analysis shows that management is fixated on increasing the dividend payout by $0.03 to $0.05 for over a decade which has led to the declining percentage in dividend growth.

The company is generating plenty of free cash flow to cover the dividend as well as increase it further. Buybacks and acquisitions have likely restricted the dividend growth.

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