Thursday, March 29, 2007


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)


MG (moneygardener) 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%.


J&J is an excellent company