Analysis
Johnson & Johnson's Cash Pile Could Come Home
As the United States makes ready for the inauguration of President-Elect Trump, companies like Johnson & Johnson (NYSE:JNJ) are likewise considering their strategic alternatives as the reality of business-friendly tax reform looms.
Specifically, President-Elect Trump's desire to reduce taxes on corporations overall - as well as give large American multinationals a one-time incentive to bring their overseas profits (in the form of significant cash reserves) back home - should provide corporate chiefs with ammunition to pursue acquisitions, in addition to boosting returns to shareholders in the form of dividends and share buybacks.
