Johnson & Johnson: Dividend King
Introduction
Johnson & Johnson (JNJ), founded in 1887, is a company heavily engaged in the research, manufacture, and sale of products in the healthcare industry. It currently has two segments: MedTech and Innovative Medicine. The MedTech segment specializes in products used in the Interventional Solutions, Orthopaedics, Surgery, and Vision categories. Furthermore, the Innovative Medicine segment focuses on the following areas: Immunology, Infectious Diseases, Neuroscience, Oncology, Cardiovascular & Metabolism, and Pulmonary & Hypertension. Being around for more than a century, Johnson & Johnson serves as a critical pillar in healthcare innovation and is currently being traded under the ticker symbol JNJ.
Key Takeaways:
- Developing robotic systems to be used in general surgery procedures
- $60 billion invested in R&D in the last 5 years
- Developing AI visualization in the MedTech segment to help surgeons identify critical structures during surgery
Technical Analysis:
JNJ is currently in an uptrend after reacting to support(green rectangle), with continuous higher highs and higher lows. It reached resistance (red rectangle) and began to consolidate around it. I predict that the price will break through the resistance and use it as support to continue climbing higher.
Fundamental Analysis:
JNJ is a known dividend king with a current dividend yield of 4.96 and a history of dividend increases for almost six decades. The company is a slow-growing stock, with only a 4.38% increase in total revenue since FY18. However, by reducing liabilities and debt, its net income has increased by 129.8% since FY18. Additionally, JNJ stock price has been up 22.10% in the past five years but down 7.84% as of last year. If you’re looking for slow and steady growth with a good dividend yield, JNJ is the perfect stock for you.
News:
Johnson & Johnson has faced many lawsuits alleging that its talc products cause ovarian cancer. These lawsuits claim that Johnson & Johnson failed to warn consumers about the potential risks of asbestos, a known carcinogen, in the talc products. The company has agreed to pay a $6.5 billion settlement to resolve these lawsuits. As of now, Johnson & Johnson has taken all its talc-based baby powder off the shelves and has resorted to cornstarch-based alternatives.
Conclusion:
Johnson & Johnson is one of the world’s largest and well-known companies. With its technological innovations and steady increase in revenue and income, it is safe to assume that the JNJ stock price will continue to increase throughout the years to come. Additionally, with its good dividend yield, it remains an attractive stock to add to investment portfolios focused on long-term growth.
