Summary
- Johnson & Johnson is a giant healthcare conglomerate with global operations.
- The company is a long-time dividend growth stock. JNJ is a Dividend King, having raised the dividend for 58 consecutive years.
- The balance sheet is strong with a low leverage ratio and high interest coverage. JNJ has a triple-AAA credit rating.
- JNJ is facing legal challenges in opioids and talcum powder.
- The company has a broad product portfolio across three major business segments.
Johnson & Johnson (JNJ) is a company that can serve as a core stock in many dividend growth portfolios. JNJ is a Dividend King and Dividend Aristocrat, having raised the dividend for 58 consecutive years. Additionally, JNJ has a coveted triple-AAA credit rating. Only two companies do so, JNJ and Microsoft (MSFT). The company is a giant healthcare conglomerate. Most of us know JNJ from our youth when we used baby shampoo. Even as adults, JNJ’s broad product portfolio in healthcare essentially means that you are probably using a JNJ product. What’s not to like with JNJ? There are risks due to lawsuits related to opioids and baby powder. Further, the company is facing headwinds from COVID-19. The stock is rarely undervalued. That said, I view the stock as a long-term buy.
Source: JNJ
Overview of Johnson & Johnson
Johnson & Johnson was founded in 1886. Today, it is the world’s largest healthcare conglomerate. The company has three business segments: pharmaceuticals, medical devices, and consumer health. Johnson & Johnson is ranked the No. 88 global brand in 2019 by Interbrands. Major consumer health brands include Band-Aid, Neosporin, Tylenol, Zyrtec, Sudafed, Motrin, Benadryl, Pepcid, Listerine, Aveeno, Neutrogena, Stayfree, Carefree, o.b., and Clean & Clear. Johnson & Johnson also makes oncology, immunology, cardiovascular, and other therapies including several blockbuster drugs. Lastly, the company makes surgical products, orthopedic products, vision care products, sterilization products and much more. Company-wide revenue was $82,059 million in 2019.
