Thursday, March 29, 2007

JNJ

I purchased JNJ yesterday for a long term hold and here are my reasons why:

- 44 years of consistent dividend growth.
- Dividends issued to shareowners every quarter since 1944.
- Dividend raised each year for 44 consecutive years.
- Sales have increased each year for 73 consecutive years.
- Double digit Earnings increases for 21 consecutive years.
- Current yield of 2.50%
- 44% of sales outside of North America (built-in currency hedge)
- ROE levels of above 21% for the past 10 years
- Current P/E – 16.18
- Projected 2007 P/E – 15.3
- Projected 2008 P/E – 13.44
- 4 Star rating from S&P - $74 one year target
- Argus rates it a buy with a $76 one year target
- I like their diversified holdings within the healthcare sector particularly their consumer products.

(Disclaimer: I’m not your boss or your spouse so do you own research and make your opinions on when to buy or sell. Nothing I say should be bastardized or construed in any way to be advice)

3 comments:

advantage said...

Excellent buy and fabulous company..good timing...

S. B. said...

They are just about at the point in their fiscal year where they raise their dividend. In a month or so, the forward yield will be higher than 2.5%.

QUALITY STOCKS UNDER 5 DOLLARS said...

J&J is an excellent company