Tuesday, February 10, 2015

Recent Buy - Johnson & Johnson (JNJ)



9th February 2015 I Bought 20 shares of JNJ at $99.90 per share plus commission.


Johnson & Johnson, together with its subsidiaries, is engaged in the research and development, manufacture, and sale of various products in the health care field worldwide. The company operates in three segments: Consumer, Pharmaceutical, and Medical Devices and Diagnostics. The Consumer segment offers a range of products used in the baby care, skin care, oral care, wound care, and womens health fields, as well as nutritionals, over-the-counter pharmaceutical products, and wellness and prevention platforms under the JOHNSONS, AVEENO, CLEAN & CLEAR, DABAO, JOHNSONS Adult, LUBRIDERM, NEUTROGENA, RoC, VENDÔME, LISTERINE, BAND-AID, NEOSPORIN, STAYFREE, CAREFREE, o.b. tampon, SPLENDA, TYLENOL, SUDAFED, ZYRTEC, MOTRIN IB, and PEPCID brand names. 
This segment markets its products to the general public, as well as to retail outlets and distributors. The Pharmaceutical segment provides various products in the areas of anti-infective, antipsychotic, cardiovascular, contraceptive, gastrointestinal, hematology, immunology, infectious diseases, metabolic, neurology, oncology, pain management, thrombosis, and vaccines. This segment distributes its products directly to retailers, wholesalers, and health care professionals for prescription use. The Medical Devices and Diagnostics segment offers various products to treat cardiovascular disease; orthopaedic and neurological products; general surgery, biosurgical, and energy products; professional diagnostic products; infection prevention products; and disposable contact lenses. This segment distributes its products to wholesalers, hospitals, and retailers, used principally in the professional fields by physicians, nurses, hospitals, and clinics. Johnson & Johnson was founded in 1885 and is based in New Brunswick, New Jersey. (Yahoo Finance)


JNJ is a Dividend Champion with an 52 year streak of dividend increases. Dividend growth rates for 1, 3, 5 and 10 years are 6.6, 7.0, 7.4 and 9.7. (DividendChampions.xls)  Johnson & Johnson now pays dividends of $0.70 per share in March, June, September and December.


Source: gurufocus.com

JNJ's earnings per share has moved nicely upward except a big dip in 2011. After that EPS has continued to grow nicely again.


Some ratings for JNJ:

    Yahoo:  Mean Recommendation 2.5, 1y Target Est $109.39
    Reuters: Mean Rating 2.50
    Morningstar:  (***)

My last purchase 20 shares of JNJ increases €36.88 ($41.72) of expected annual dividend net income, which increases my portfolio projected annual net dividend income to €9064.47. With purchase price $99.90 plus commission my starting yield on cost is 2.80%.

Click here to see my portfolio.

Full Disclosure: Long JNJ

 

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17 comments:

  1. Roadmap2RetireFebruary 10, 2015 at 5:16 PM

    Good stuff, DH. I am keeping a close eye on JNJ. Its still a tad expensive, but I might just pull the trigger and add anyway - as its really hard to find JNJ at discount prices.

    Congrats on adding an extra $41 to your dividend income.
    R2R

    ReplyDelete
    Replies
    1. DividendHawkFebruary 11, 2015 at 5:42 PM

      Hi R2R

      Thanks. I agree JNJ is a bit expensive, but like you said, it’s not easy to get it at a cheap price.

      Thanks for stopping by!
      DH

      Delete
  2. IsomahamiesFebruary 10, 2015 at 5:51 PM

    Tutunkuuloinen hankinta, itsekin täydensin omaa salkkua eilen 17 kpl voimin :) Hieman tyyris, mutta laatupulju alle satasen hintaan minusta.

    ReplyDelete
    Replies
    1. DividendHawkFebruary 11, 2015 at 5:44 PM

      Moi

      Onnittelut hyvästä hankinnasta. Joo hieman kallis, mutta hyvää saa harvoin halvalla!

      Kiitos vierailusta!
      DH

      Delete
  3. Retire Before DadFebruary 10, 2015 at 5:51 PM

    DH,
    Love it. I opened a position earlier this month. Looking to add more if it heads lower.
    -RBD

    ReplyDelete
    Replies
    1. DividendHawkFebruary 11, 2015 at 5:46 PM

      Hi RBD

      Thank you! Hopefully I will have some cash, when it will go lower.

      Thanks for stopping by!
      DH

      Delete
  4. DivGuyFebruary 10, 2015 at 6:42 PM

    Good choice! JNJ is part of many portfolios I built for my Dividend Stocks Rock website. Congrats on that buy!

    ReplyDelete
    Replies
    1. DividendHawkFebruary 11, 2015 at 5:47 PM

      Hi DG

      Thanks! JNJ sure is a great company for many kinds of portfolios.

      Thanks for stopping by!
      DH

      Delete
  5. Monsieur DividendeFebruary 10, 2015 at 9:35 PM

    Hey DH. JNJ, as you may already know, is my biggest and favorite company. I have 130 shares bought roughly 60$/share in 2010 or so. At some point I had 200... which was representing more than 15% of my portfolio. So I sold some at 77$ and 80's something. That was a mistake. Again, one has to stick to its strategy : buy and hold. But still, it remains my biggest investment. I won't budge this time around. They are all here to stay, every 130 of them. Nice buy!

    ReplyDelete
    Replies
    1. DividendHawkFebruary 11, 2015 at 5:48 PM

      Hi Johnny

      Thank you! I hope that I would also be so wise, to buy JNJ many years ago, but cause I wasn’t, I need to start slowly building up my position now.

      Thanks for stopping by!
      DH

      Delete
  6. My Own AdvisorFebruary 11, 2015 at 2:18 AM

    Love the call. I'm happy to have JNJ DRIPping :)

    ReplyDelete
    Replies
    1. DividendHawkFebruary 11, 2015 at 5:50 PM

      Hi Mark

      Thanks! Hopefully JNJ will DRIPping more and more! :)

      Thanks for stopping by!
      DH

      Delete
  7. Captain DividendFebruary 11, 2015 at 4:54 AM

    Thanks for the update, it reminded me that JNJ is looking more and more attractive as it's coming off of it's highs. I really need to get my hands on more shares of this monster before it's too late.

    ReplyDelete
    Replies
    1. DividendHawkFebruary 11, 2015 at 5:51 PM

      Hi Captain

      You have already picked up some great companies in this year, surely you will have change to pick up JNJ also!

      Thanks for stopping by!
      DH

      Delete
  8. Dividend MantraFebruary 11, 2015 at 6:10 AM

    DH,

    Great buy. About as high quality a company as one can find. I don't personally have any room in my portfolio, but I was lucky to load up a while ago at cheaper prices. Great business. :)

    Best wishes!

    ReplyDelete
    Replies
    1. DividendHawkFebruary 11, 2015 at 5:52 PM

      Hi Jason

      Thank you! I would still have plenty of room for JNJ in my portfolio. I hope that I will have free cash, when it will go down around $95 so I could pick up some more!

      Thanks for stopping by!
      DH

      Delete
  9. TawcanFebruary 13, 2015 at 3:13 AM

    Excellent buy, I plan to add more JNJ to our portfolio once we have some free cash.

    ReplyDelete

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