UK Markets close in 4 hrs 46 mins

Should You Be Holding Johnson & Johnson (NYSE:JNJ)?

Simply Wall St

Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!

Johnson & Johnson (NYSE:JNJ) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of JNJ, it is a dependable dividend payer with a a strong history of delivering benchmark-beating performance. In the following section, I expand a bit more on these key aspects. For those interested in digger a bit deeper into my commentary, read the full report on Johnson & Johnson here.

Established dividend payer with proven track record

In the past couple of years, JNJ has ramped up its bottom line by over 100%, with its latest earnings level surpassing its average level over the last five years. This strong performance generated a robust double-digit return on equity of 25%, which is an optimistic signal for the future.

NYSE:JNJ Income Statement, June 7th 2019

For those seeking income streams from their portfolio, JNJ is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 2.8%.

NYSE:JNJ Historical Dividend Yield, June 7th 2019

Next Steps:

For Johnson & Johnson, there are three key aspects you should further examine:

  1. Future Outlook: What are well-informed industry analysts predicting for JNJ’s future growth? Take a look at our free research report of analyst consensus for JNJ’s outlook.
  2. Financial Health: Are JNJ’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of JNJ? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.