Wednesday, October 15, 2008

J&J, Safe, Solid, & Consistent

Global health care company and perennial dividend grower, Johnson & Johnson (JNJ) announced yesterday that they grew their third quarter earnings by 10.4% over 2007. Sales were up across the board and were largely driven by international efforts. Generic drugs are having a negative impact on J&J's pharmaceutical business. Johnson managed to grow consumer sales by 13% driven primarily be U.S. allergy sales (Zyrtec) and Chinese moisturizer sales (Dabao).

The company also increased its earnings guidance for full year 2008. Overall, the earnings report looked very solid, a nice reprieve from the dark day to day headlines in the market these days. JNJ is being viewed as a safe harbour from the storm lately and they are certainly living up to that billing as they continue to execute despite current conditions.

Here is a glance at J&J's recent dividend activity:

2006-$1.47
2007-$1.64
2008-$1.80

That is a compound annual growth rate of the dividend of about 11% over the last few years.

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3 comments:

  1. What a great company MG! I was very happy going over their quarterly numbers yesterday with everything exactly as I had expected. +/-5% within their guidance is something that I look for and JNJ is one company that never disappoints me in that department.

    ReplyDelete
  2. I finally bought on Friday when everything was sold off without rhyme or reason. If there is more panic, I will be adding.

    ReplyDelete
  3. I finally bought on Friday when everything was sold off without rhyme or reason. If there is more panic, I will be adding.

    ReplyDelete

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