“Johnson & Johnson is engaged in the manufacture and sale of a broad range of products in the health care field in many countries of the world. The company's worldwide business is divided into three segments: Consumer; Pharmaceutical; and Professional.”
Dividend Yield: 2.64%
Dividend Yield 5yr Avg: 1.9 %
ROE levels of above 21% for the past 10 years
Current P/E– 17.3
Projected 2008 P/E –14.3
Projected 2009 P/E – 13.6
4 Star rating from S&P - $74 one year target
Argus rates it a buy with a $75 one year target
Other information:
-44 years of consistent dividend growth.
-3 year average dividend growth rate: 14%
-5 year average dividend growth rate: 15.5%
-5 year average dividend payout ratio: 40%
-Dividends issued to shareowners every quarter since 1944.
-Dividend raised each year for 44 consecutive years.
-Sales have increased each year for 73 consecutive years.
-Double digit Earnings increases for 21 consecutive years.
-44% of sales outside of North America
Calculated Fair Value:
The fair price I calculated for this stock is $67.
[I currently own shares of JNJ. No information provided on this site should be interpreted as either advice or a recommendation. Please do your own research and consult your own financial advisor before buying or selling.]
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1 comment:
How did you calculate fair value? In a recent post I used JNJ to demonstrate an incredibly oversimplified stock valuation method that I sometimes use to get a rough gauge of value. Just curious as to your methods.
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