Acquisition JNJ

Johnson-&-Johnson-Company-LogoThis recent acquisition I decided to go with the very famous and beloved by dividend growth investors, Johnson & Johnson (JNJ). Very hard to resist such a premium company trading near 16 P/E. It has done great over the years returning capital to shareholders and with their low payout ratio I foresee more of that coming. Additionally, this dividend growth aristocrat has been raising their dividend every single year since 1963.

Founded in 1885, Johnson & Johnson is a major leading healthcare holding company that researches, develop, manufactures and sells a variety of products worldwide. The company operates primarily in three segments, consumer, pharmaceutical and medical devices. It has a wide diversification of products that it distributes to the general public through retail outlets, distributors, wholesalers, hospitals, and health care professionals. Some of these products are prescription and non prescription based. Though, you might see the majority of the companies products in hospitals or other health institution environments used by physicians, nurses and other medical professionals.

  • Dividend Yield: 3.2%
  • 3 Year Dividend Growth Rate: 7%
  • Payout Ratio: 48.7%
  • P/E: 16.3
  • Consecutive Years of Dividend Raises: 52

I purchased 10 shares of JNJ for the price of $91.40 adding $30.00 to my annual dividend income.

This is the 10th time I am initiating a stock acquisition this year. This transaction is my additional purchase of JNJ shares into the portfolio. As of today, I hold 35 shares of JNJ. Currently, JNJ ownership stake represents to be around 5.1% of my current portfolio value.

The 12-month dividend income increased to $2,478.

Thank you for reading & have a great day!

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12 Comments

  1. JC on September 21, 2015 at 12:29

    JNJ is always a solid option especially when shares are offering a 3%+ yield. If I had some capital available JNJ would be high on my list of purchase candidates.

    • DividendVet on September 21, 2015 at 13:45

      Absolutely, JNJ is one of a few core holding companies that investors build their portfolios around.

      Good hearing from you.

  2. Captain Dividend on September 21, 2015 at 19:38

    JNJ is a classic classic sleep at night hold for me. I just bought some more myself. Seems to be at least a fair value here. Thanks for the update.

    • DividendVet on September 22, 2015 at 11:05

      It definitely is, though I always try to buy a steady sleep at night stocks. Lets just say I get plenty of sleep on daily basis. 🙂

      Take care.

  3. DivGuy on September 22, 2015 at 13:33

    JNJ is surely a stock for any investor core portfolio. Great adding! A long-time holder myself and sure don’t regret it!

    Mike

    • DividendVet on September 22, 2015 at 14:27

      As you mentioned, I dont think anyone can go wrong with JNJ as one of their core holdings. I believe it is Jason’s (DividendMantra) biggest holdings.

      Also, the company is trading at a lowest P/E since the year 2011. Check out the chart.

      https://ycharts.com/companies/JNJ/pe_ratio

      Thanks for stopping by!

  4. Tony @ Investing Track on September 27, 2015 at 06:59

    Nice buy. JNJ is a pretty solid company with decent growth prospects. I saw that you bought Walmart in a previous post. Are you concerned about the continued competition Walmart will face from Amazon?

    • DividendVet on September 27, 2015 at 11:11

      Thanks, indeed it is. As far as WMT is concerned, I am not concerned what their competition are doing, I am concerned in WMT fundamentals, in growing profits, cutting costs, continuing raising dividends and being a great long term business just to name a few. I hope that answers your question.

      Take care.

  5. Investment Hunting on September 27, 2015 at 13:36

    Great buy. When a fantastic stock like JNJ is on sale I say act and buy some shares.

    • DividendVet on September 27, 2015 at 13:52

      Much appreciated! I couldn’t agree more, act and act fast enough, before the market rises the tide eliminating bargain deals.

      Thanks for your comment.

  6. Bluegrass Dividends on October 11, 2015 at 20:09

    I recently bought 10 shares of JNJ myself, and am building up capital to get more. Nothing better than the market dragging down solid stocks with the rest so you can buy them on sale.

  7. DividendVet on October 12, 2015 at 16:41

    Great to hear, I wouldn’t mind grabbing some more shares myself.

    Take care.

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