Money and Finance
Johnson & Johnson: Quality at a Reasonable Price
I mentioned in my annual dividend growth checkup that I was underweight the health care industry and was looking to increase my exposure there. I recently added shares of one health care giant, Becton, Dickinson & Company (NYSE:BDX) (Full Analysis Here), to my portfolio; however, there's another giant that is absolutely wonderful. Johnson & Johnson (NYSE:JNJ) recently announced a 7.1% dividend increase which would mark its 53rd consecutive increase, marking JNJ as a dividend champion. Johnson & Johnson closed trading on Friday, May 1st at $101.13, giving a current yield of 2.97%.
The following tables/graphs are taken from my personal stock analysis spreadsheet. Data for the stock analysis was sourced from Johnson & Johnson's investor relations page, Morningstar, and Yahoo Finance.
Historic Growth Rates:
Historically, owners of Johnson & Johnson have earned solid returns. According to longrundata.com, JNJ has rewarded investors with a total return of 196%, or 7.0% annualized returns, over the last 10 years. Those numbers are market returns at specific snapshots in time and aren't necessarily indicative of the business results over the same time period. Looking at the historic growth rates for per share dividends, earnings, revenue, and free cash flow gives a better idea of the operational results that Johnson & Johnson has delivered.
You can read the full analysis of Johnson & Johnson on Seeking Alpha.
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Money and Finance