If I had to pick one company from the S&P 500 that I felt would still be around in another 100 years, JNJ would be at the top of a short list.
Johnson & Johnson is a healthcare behemoth with a current market cap of 328 billion. They are one of only 2 publicly traded companies with a AAA debt rating from S&P, the other being Microsoft. They are a dividend champion and have raised dividends for over 56 straight years. They also have great tailwinds from the baby boomers. It doesn’t get much better than this folks.
JNJ is a wonderful company trading at a fair value.
According to E*Trade, JNJ has expected 2019 earnings of 8.58 giving them a forward P/E of around 14. Their 5-year average P/E is 20.2.
Morningstar agrees and assigns them a 4 Star rating with a fair value of $130/share.
I first purchased shares back in 2011 for $64/share. The share price has nearly doubled and so has the dividend.
Speaking of double, I decided to double my position over the last couple of weeks.
My recent purchases:
06/01 – Bought 24 of shares of JNJ at 120.86
06/05 – Bought 25 shares of JNJ at 121.51
06/15 – Bought 25 shares of JNJ at 122.50
I spent $9000 in new capital and added $266.40/year to my dividend income. This is an average yield of about 3%.
Forward 12-month Dividends:
My forward -12-month dividends are now up to $15,805.
JNJ is 4.2% of my current portfolio. I have no issue bringing them up to a 5% weighting which I will consider a full position for JNJ. I currently own 154.46 shares.
I just couldn’t help myself. With a rising rate environment I feel good holding great companies with high debt ratings.
In Recent News:
I’m currently working for my old employer from home as a recruiter. It’s nice to be home and be able to spend extra time with the family. So far this is working out well. We’ve since moved into a new home last fall in a different town since we closed the restaurant and I finally feel like I’m getting caught up on things where I have a few minutes to write now. I plan to at least start doing quarterly dividend reviews which I’ll put out in early July. I also hope to post more often about recent trades. I do always keep My Portfolio updated.
The restaurant has been leased to a new tenant and in fact all of my rentals are fully leased now. I’m up to 4 rentals including the commercial property that has two tenants.
My passive income is finally back on track and moving up nicely. I hit the $1,000/mo in dividends mark that I mentioned back in March. I have made some nice progress over the last year. One way I’ve been able to drive up my dividends is through options, you can see all of my recent options trades here.
I also recently signed up for a new brokerage account ,Robinhood. If you haven’t check them out yet I’d recommend looking at my Robinhood Review. You can still get a free share of stock as of this writing by just signing up.
So what have you been purchasing? I hope everyone is well on their way to achieving their goals this year!