Don't Ignore J&J (JNJ)
Article Submitted By: Sean Riskowitz
In a world where yield is all important, one company stands out amongst all others: Johnson and Johnson (JNJ).
While it sometimes plays second fiddle to some of its more glamorous counterparts in the pharmaceutical sector, investors seeking a quality dividend paying stock should keep consumer health company Johnson & Johnson (JNJ) on the radar.
The company, which has 250 businesses operating in 60 countries and employing around 114,000 people, has come in slightly ahead of analyst expectations when it reported second quarter earnings recently.
Sales increased 0.6% to $15.3bn compared to the same quarter in 2009. Second quarter earnings per share came in a $1.21, an increase of 5.2%. Second-quarter results included strong growth in a number of recently launched products which contributed to solid earnings.
One black mark for the company was product recalls at McNeil Consumer Healthcare which did weigh on the quarterly results where products were recalled from the United States, Fiji, Guatemala, Dominican Republic, Puerto Rico, Trinidad & Tobago and Jamaica.
Founded 120 years ago, J&J (JNJ) is widely regarded as the worlds largest and most diverse medical devices and diagnostics company, the worlds fourth-largest biologics company and the world’s eighth-largest pharmaceuticals company.
The company is attractive for investors looking for businesses which offer an attractive dividend yield. Johnson and Johnson (JNJ) offers a yield of 3.5%. The yield, while not high, is a safe as a rock, having been paid out for many decades.
While the recall has hurt J&J (JNJ) this year, it is a risk that all pharmaceutical companies face and should be seen in that context. The diversified nature of the group has meant that it can absorb the knock and will in time shake off this setback.
This is reflected in an enviable track record which includes: 76 consecutive years of sales increases; 25 consecutive years of adjusted earnings increases; and 47 consecutive years of dividend increases.
For dividend seekers, Johnson & Johnson (JNJ) remains a stock well worth considering for the long-term.
