Johnson & Johnson est une entreprise américaine fondée en 1886. Elle est one of the world's largest manufacturers of pharmaceuticals, medical equipment, hygiene, health and cosmetic products and also provides related services to consumers as well as healthcare professionals.
The size of the healthcare market is increasing as consumers take greater interest in their own health. Johnson & Johnson owns well-known brands such as Tylenol, Band-Aid and Neutrogena. Adding brands such as Listerine, Lubriderm, Visine and Neosporin further strengthened Johnson & Johnson's dominance.
Recently, however, the company has been plagued by a series of quality issuesThe company has had to recall products such as Tylenol, Motrin and Benadryl over problems ranging from musty odors, which caused nausea in consumers, to excessive concentrations of active ingredients. The manufacturing problems have hurt the company's profitability.
Johnson & Johnson offers a attractive long-term average yield of 3,44%. In the medium term, the company has managed to increase its distributions at an annual rate of 7,54%. Above all, it has achieved the feat ofincreasing its dividend every year for 49 years, which gives a good idea of Johnson & Johnson's ability to weather crises.
THE distribution rate is a little high, at 65.40%, but which still leaves a little margin for Johnson & Johnson in the event of a difficult passage. There volatility en CHF est quant à elle de 7.68%, soit la plus basse de notre portfolio. With such figures, we are closer to the risk of bonds than of stocks... The beta of only 0.53 indicates that the title is not very sensitive to market variations.
For many months, Johnson & Johnson is overlooked by the market. In the longer term, however, the company has clearly outperformed the latter.
JNJ est malheureusement very exposed to dollar fluctuations, a drop in the latter generally being accompanied by a drop in the value of the security in Swiss francs. $risk of 0.76 confirms this observation.
JNJ est indéniablement un pilier parmi les payeurs de growing dividends avec son historique impressionnant d'augmentations successives. Sa faible volatilité pourra par ailleurs attirer les investisseurs conservateurs. Néanmoins le distribution ratio a little high and the non-negligible currency risk mean that for the moment we do not consider it as a buying opportunity, but rather as a stock to keep or watch.
Sources: Yahoo Finance, Wikinvest, Swissquote, dividends.ch
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What JNJ lacks is the acquisition of a biotech to boost its stock price. On the other hand, it is a core portfolio value that I have in my sights.
Sanofi took the plunge by buying Genzyme, but at a high price.