Johnson & Johnson

Johnson & Johnson

JNJ (NYSE)

Website: www.jnj.com

Sector:  Health Care
Beta Coefficient: 0.5
10 Yr Compound EPS Growth:  8.5%
10 Yr Compound DPS Growth: 11.5%

Dividend raises, past 10 years: 10 times.


Financial Result Year 2014

Revenues (m)     74,311
Net Income (m)   17,105
EPS  5.97
DPS 2.76
Cash flow per share 7.90

Current yield 2.8%

High Price  106.5  P/E 17.8    DY 2.59%
Low Price     96.1  P/E 16.1    DY 2.87%

The company has three reporting segments:

Consumer Health Care ($145 billion in FY2014 sales)

Medical Devices and Diagnostics ($27.5 billion), and 

Pharmaceuticals ($32.3 billion).

J&J has more than 250 operating companies in 60 countries, selling some 50,000 products in more than 175 countries.

The company is fairly active with acquisitions, acquiring small niche players to strengthen its overall product offering.

J&J continues to own a dominant and stable franchise in a secure and lucrative industry.

Persistent and moderate share buybacks and dividend increases gave shareholders their fair share of the profitability of its business.

The company expects to resume a mid-single digits growth pace for both revenues and earnings in FY 2016, with corresponding benefits paid to shareholders.

J&J's steady earnings and cash flow combined with a healthy dividend and share repurchases provide gratifying total shareholder returns.

The P/E has expanded from 14 - 15 to the 16 - 17 range, adding a bit of downside risk.