JNJ Stock is Johnson and Johnson Stock a Good Buy | Summary and Q&A

TL;DR

Johnson and Johnson's business is primarily focused on pharmaceuticals, with pharmaceuticals accounting for 47% of revenue. The company is currently facing litigation and challenges in the market.

Key Insights

• ❓ Johnson and Johnson's main revenue segment is pharmaceuticals, accounting for 47% of revenue.
• 🙈 The company has seen a decline in revenue from consumer products over the years.
• 😀 Johnson and Johnson is facing litigation and potential revenue loss from generic drug competition.
• ✋ The company has a consistent dividend payment track record with a dividend yield higher than the S&P 500.
• 🥳 Johnson and Johnson's dividend coverage ratio indicates that they have more than 100% net income needed to cover dividend payments.
• 🪐 Dividend increases for Johnson and Johnson have been around 7% on average, and net income growth has also averaged around 7%.
• 🧚 Using discounted cash flow analysis, the fair value estimate for Johnson and Johnson stock is around $169 per share.

Transcript

Hey YouTube. I'm Jimmy and this video. We're gonna walk through my analysis of Johnson and Johnson ticker symbol JNJ. This video continues our series or analyzing all 30 stocks in the Dow Jones industrial average with the ultimate goal of taking that analysis and trying to build three different portfolios a value portfolio a growth portfolio a divi... Read More

Questions & Answers

Q: What are the main revenue segments for Johnson and Johnson?

Johnson and Johnson's main revenue segments are pharmaceuticals, medical devices and diagnostics, and consumer products.

Q: How has revenue from consumer products and pharmaceuticals changed over the years?

Revenue from consumer products has declined over the years, while pharmaceutical revenue has increased.

Q: What challenges is Johnson and Johnson currently facing?

The company is currently facing over 10,000 personal injury lawsuits and potential revenue loss from the release of generic versions of one of their drugs.

Q: How is Johnson and Johnson's dividend performance?

Johnson and Johnson has a consistent dividend payment track record, and its current dividend yield is higher than the S&P 500's yield. They have maintained a payout ratio of approximately 50% over the past decade.

Summary & Key Takeaways

• Johnson and Johnson's main revenue segments are pharmaceuticals (47%), medical devices and diagnostics, and consumer products.

• Revenue from consumer products has declined over the years, while pharmaceutical revenue has increased.

• The company is facing litigation and challenges, including personal injury lawsuits and potential revenue loss from generic versions of one of their drugs.