Benzinga - by AJ Fabino, Benzinga Staff Writer.
Johnson & Johnson (NYSE:JNJ) investors on Tuesday reacted negatively to the Centers for Medicare and Medicaid Services (CMS) announcement of a price negotiation list that included multiple drugs from the New Brunswick, New Jersey-based company.
While traders pushed shares nearly 2% lower during Tuesday's session, it's worth noting that the changes won't take affect until early 2026, which implies that the dip seen Tuesday may be bought.
The Regulatory Backdrop: CMS’s first list of 10 drugs for price negotiation under President Joe Biden’s Inflation Reduction Act is expected to make an impact by January 1, 2026.
Johnson & Johnson is present on the list, with drugs like Xarelto, Stelara and Imbruvica. The selected therapies — of which there are seven others — accounted for a significant $50.5 billion in total Part D gross covered prescription drug costs. Read more on the list here.
Amid looming uncertainty, one thing appears solid: J&J’s dividend payouts. With a current yield of 2.86%, Johnson & Johnson is a staple in many income-focused portfolios.
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To earn $500 per month, or $6,000 per year from J&J’s dividends, you would need to buy 1,286 shares, which is a $209,790 investment.
For those who want to start smaller, 257 shares would yield you $100 per month. At current prices, that will run you about $41,958.
Note that dividend yield can change on a rolling basis, as the dividend payment and the stock price both fluctuate over time.
The dividend yield is calculated by dividing the annual dividend payment by the current stock price. As the stock price changes, the dividend yield will also change.
For example, if a stock pays an annual dividend of $2 and its current price is $50, its dividend yield would be 4%. However, if the stock price increases to $60, the dividend yield would decrease to 3.33% ($2/$60).
Read Next: How To Earn $500 A Month With This $10 Stock
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