This time around I was trying to decide which stock to purchase and it came down to three stocks, IBM, PEP, and JNJ. I think that I would be happy with any of these stocks here and all three are due for dividend increases next quarter. Johnson & Johnson had recently announced it's earnings and over the next couple days the stock sold off just enough to trigger my limit order. In hindsight I wish I would have waited a day to buy since the markets got hammered down nearly 300 points on friday then I could have picked up shares a bit cheaper but ohh well.
I purchased 11 shares of Johnson & Johnson (JNJ) at $99.99
As with my last purchase of PM, JNJ also is facing currency headwinds from a strong dollar. This really showed in the quarterly numbers but I am confident the company will return to growth soon enough.
Johnson & Johnson is a holding company, which is engaged in the research and development, manufacture and sale of products in the health care field within its Consumer, Pharmaceutical and Medical Devices, and Diagnostics business segments.
Johnson & Johnson (JNJ) Stock Chart
Johnson & Johnson (JNJ) Basic Statistics
- Ticker Symbol: JNJ
- PE Ratio: 17.5 (15.5 Forward p/e)
- Sector: Healthcare
- Yield: 2.8%
- Dividend Growth Streak: 52 years
- 5 Year Dividend Growth Rate: 7.3%
- Payout Ratio: 48 %
- Market cap: $277b
- Beta: .96
- Website: http://www.jnj.com
Johnson & Johnson (JNJ) Dividend Growth Chart
Johnson & Johnson (JNJ) EPS Growth Chart
Captain,
ReplyDeleteI love the choice. Great job getting shares under $100. Compared to the overall market, the shares look pretty cheap. This is a company that you can invest in year after year and be happy with the results!
MDP
My thoughts exactly. I consider JNJ to be one of my core positions but when I looked at my portfolio it was one of the smallest. I knew it was time to add to it. JNJ doesn't really go down much compared to the broader markets (just look at 08-09) so any dips are a gift here.
DeleteGreat buy at less than $100 per share. Can't go wrong with JNJ.
ReplyDeleteI wasn't sure if I'd be able to get in under $100 but earnings conspired to help get the price there.
DeleteOut of the three companies you had on your list, I think I like this pick the best. PEP seems a bit overvalued and IBM is having some money making issues... best to wait for another earnings report or two from them to see if the bleeding has ended. JNJ however continues to be chuggin along and is relatively cheap compared to the market.
ReplyDeleteKeep up the great work!
Thanks for the feedback, I'm certainly no expert so it's nice to hear others opinions. I was hesitant about IBM and tech in general just because the companies have to keep innovating and changing so quickly. I really should add one more tech giant to my portfolio though.
DeleteCaptain,
ReplyDeleteOne of my favorite companies, and my largest position. Glad to be a fellow shareholder!
Cheers.
Same here DM, it's a shame that I don't own more of it. Ever since I made my first purchase at $68 / share the stock has been on a tear and I just never made another purchase. Finally got some here!
DeleteLove it, Captain. An evergreen company that one simply cannot go wrong with, by investing in it.
ReplyDeletecheers
R2R
It's certainly one of the best out there. With a dividend raise coming closer it wouldn't be a stretch to see a 3% yield too.
DeleteGreat stock at a good price. Nice work Captian.
ReplyDeleteGreat purchase Captain. JNJ is a great company for long term holdings and the currency issues are definitely short term. I have been adding JNJ lately when the price drops to around $100. Looking forward to add more if the price declines further.
ReplyDeleteJNJ is the classic dividend stock, definitely can't go wrong there, especially at under $100. My average cost per share of JNJ currently sits just a tad above $100, but I'd love to buy more share of this wonderful company soon and average down into the $90s.
ReplyDeleteI'm new to your blog, love the name. Captain Dividend would be the coolest superhero ever, they should make a comic/movie out of it :P
Keep up the good work, I'll be following your progress!
Cheers
Great buy at great price! Congrats! ;-)
ReplyDeleteNice buy with JNJ. It is still on my April stock consideration list and I have seen quite a few other buys among the dividend bloggers as the price sits around $100. Thanks for sharing.
ReplyDeleteThere's almost never a bad time to buy JNJ! I consider it one of those that are safe to buy at almost any price point. And you bought at a pretty good one!
ReplyDeleteCaptain,
ReplyDeleteJNJ is a great buy. The divs and stability of the stock are very reliable, and the stock will only continue to grow in the future. Back when I was in high school, i had an economics teacher to who told the class she was planning on buying JNJ. It was 60 dollars a share at the time. I wish I would have had that opportunity!
D2R
You can't really go wrong with JNJ, and I think it will do fine over the long term. I wish the value was a little bit better, and would personally like to get a 3%+ yield before dipping my toe in the water, but over the long term JNJ should be a steady performer.
ReplyDeleteGreat company at great price. I can't wait to own JNJ!
ReplyDeleteBeSmartRich
Great buy and a great price. JNJ is one of my favorite stocks. The recent dividend increase was a cherry on top.
ReplyDelete