Showing posts with label $JNJ. Show all posts
Showing posts with label $JNJ. Show all posts

Tuesday, January 17, 2012

Johnson & Johnson JNJ Dividend Machine January 17, 2012 a core holding

English: logo Johnson and Johnson Česky: logo ...
English: logo Johnson and Johnson Česky: logo Johnson and Johnson (Photo credit: Wikipedia)
Johnson & Johnson (JNJ)

            It may seem funny that my Dividend Machine for this week, January 17, 2012 is one of the few stocks that is not up today.  However, this company is one you want to own for a long time.  Just think about how many products you need and you use that are produced by Johnson & Johnson.

            JNJ has paid dividends since 1944 and has raised them every year for 49 years.  A lot has happened over the past 49 years that could derail even the best company.   Any company that can increase our income through thick and thin is a company we want to own for income.

            JNJ’s last four quarter earnings have been $4.10 per share.   Their last four quarter dividends have been $2.22 per share.  If you own JNJ by February 24, 2012 you will be paid the quarterly dividend of $.57 on March 13, 2012.

            Fundamentals are important to every income investor.  While I do not use stock price as one of my selection criteria, I do concentrate on four fundamentals.   One is that the dividend has to be greater than three percent and JNJ’s annualized (four dividend payments of .57 each) yield at today’s price of $65.22 is 3.495 percent.   A second criterion is the company has to have increased the dividend for at least five years and with their 49 year history we have every right to expect JNJ to continue to increase our income.  Earnings need to be greater than the dividend and here again, JNJ passes with flying colors.  Finally, D/E ratio (debt to equity ratio) has to be 1 or less.  JNJ’s D/E ratio is .30.  Folks, this is a solid company.


            If any company qualifies as a core holding it is JNJ.   Use this profile as an example of the characteristics a Dividend Machine should own.

Very Truly Yours,

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Monday, July 25, 2011

Stocks or Bonds: JNJ a study!

logo Johnson and JohnsonImage via Wikipedia
JNJ bond or stock – the income investor’s dilemma!

                With all the economic problems facing the world, visiting this subject is appropriate.  Are bonds safer than stocks?  Should retired people, a major category of income investors buy a bond or a stock?  Are we going to have a financial meltdown that would make you want to own only cash which generates no income?  The Gold and Silver stuff is hard to eat and what a pain to make change.
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Wednesday, April 6, 2011


          Investment show experts take jabs at investors who buy companies because of the dividend.
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Tuesday, March 15, 2011

Income Investors in a down market

Investors never like to open their brokerage account and see losses
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Sunday, January 16, 2011

Should you ever sell a dividend machine?

Deciding if you should sell a dividend machine is an interesting question; a question I faced this last week.  Today, I want to compare two dividend machines in the same industry and use them as an exercise in how to determine if you should sell a dividend machine based on bad news.
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Tuesday, December 7, 2010

Dividend Machines and Diversification

Diversification is one of the most important aspects of investing.

I try to profile companies that meet all our criteria as a dividend machine and also provide diversification. Never own just one company. One hundred companies are too many to own. Know your companies, what they do as well as their fundamentals.

Diversification is not just measured by how much cash you have versus the percent invested in bonds and stocks. Diversification can be measured in many ways. Let's look at the companies I have profiled over the last 4 weeks as an illustration of how to diversify with dividend machines.

11/14/2010 – MCHP Microchip Technology a smaller electronics company that makes microprocessors and receives about three quarters of its income from outside the U.S.

11/21/2010 – JNJ Johnson & Johnson a very large multinational company that is a big pharma, biotech, and band aid company. You get a lot of diversification in just one company.

11/28/2010 – GPC Genuine Auto Parts is both a producer of auto parts and a retailer with most of its business in the United States.

12/06/2010 – KMB Kimberly Clark a very large multinational company concentrating on consumer staples like tissue and diapers with sales in both the U.S. and abroad.

Look for companies that meet our criteria and that also provide diversification and sit back and watch your income grow.

Very Truly Yours,

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Sunday, November 21, 2010

Dividend Machine Johnson and Johnson, JNJ

Over my many years of investing I have owned Johnson & Johnson, symbol JNJ, many times and always sold it at a gain. I have again added JNJ to my portfolio as a dividend machine and I want to share my thinking with you to help you learn how to pick dividend machines for your portfolio. JNJ is the second of fifty two dividend machines I will profile for your income investing portfolio.

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