What you expect is irrelevant. There could be a 30% "pullback" or a run to $95. based on my experience neither of those things would be a big surprise. As always, I will hold until such time that it appears I have dead money in this thing or the fundamentals change.
Give it up. JNJ pays a good dividend and has paid it since 1944 and raised it every year for 50 years. Why do you think people buy this stock? To make a quick buck? This baby took a 32% drop from August of '08 to March of '09 and nobody that held lost a cent and actually received a dividend increase.
Excellent point, Shark. I began seriously investing in 1980, just fooled around with it before then. I retired on it in September, 1996 prior to my 56th birthday. Lived on my investments only until I reached 65. I did it with buy and hold on quality stocks and a couple of mutual funds. Yes. the 1980s and 1990s were exceptional years for investors and I did very well with tech because I had a background in technology. Techglass appears to be one that chases growth stocks which bring up the question of why he is even messing with things like JNJ. Nobody ever got rich quickly buying large caps that tend to just plod along delivering a dividend and a few percentage points of price appreciation yearly. They are long term investments suited for people with only moderate risk tolerance. With one exception I am now 100% in large cap dividend payers because at 72, I am a bit old for the hot stuff. The number of large cap stocks, including pharmas, with higher P/Es is nearly infinite, which is my way of saying techglass is just plain wrong and misinformed.
Sure we are. I think we agree that techglass really doesn't understand that JNJ is doing about the same as most large cap dividend payers. My point is simply if anybody is looking for a solid company with a decent dividend, JNJ is a good buy. He claims JNJ's P/E is out of line with other large caps when it actually is better than five others I mentioned. I think the kid either forgot to do his homework or doesn't understand it. You won't get rich with JNJ but you WILL make money and be able to sleep at night. As far as bubbles are concerned, JNJ isn't even close to one. My only worry about JNJ and others like it is recession or an increase in interest rates. Both of those things are beyond the control of JNJ, the Deity, Jefferson or Gandhi.
Something must have been a good idea with the share price up 20% in a year plus a nice dividend. PFE did better but I own both of them so no complaint so long as JNJ is my "dog" among pharmas. I have held JNJ for about 5 years now and I admit during those first three years I did get tired of the barking sounds every time I checked the share price but all is forgiven now.
Nonsense! GE 18.4 KMB 21.22 KO 19.81 PG 17.56 T 29.49 and SO 16.99. Have a nice day.
Here is the thing, shark. JNJ is what I call a plodder. It just plods along and pays a nice dividend as it has for 69 years now and the divy has increased every year for over 50 years now. The pipeline is good and most patent expirations are behind JNJ. Nobody gets rich holding this baby but there is a nice solid return and I believe it will continue based on what is known today.
That is a new one on me. What does it mean it is "selling for twice it's growth rate"? It's growth rate is what it is and its share price is what it is. Considering a P/E of about 15 (15.1 actual in 2012 and no higher estimate for this year it is fairly priced in my opinion and in the opinion of my broker and many others. I expect 7% growth long term based on their pipeline and the fact that patent expirations are are mostly behind JNJ. Anyway, tell me how it is selling for twice its growth. I honestly don't have a clue what that means. It would seem that if growth was perceived to be low, we would be looking at a much lower P/E. Somebody must think this baby is going to fly. With 35 years experience I believe it is but I will admit I could be wrong.
Long term EPS growth rate 7% and five year trailing growth rate 9% according to Edward Jones.
9% 5 year trailing growth rate. Long term EPS growth rate estimate 7%, according to Edward Jones with a buy rating.
I have no idea. What I bought 25 years ago was Iowa Electric which was headquartered in Cedar rapids, Iowa. It is a different company now. I bought it when a flyer came with my electric bill saying I could sign up for their drip plan. Through it all, even when they tried to become a telephone company I continued buying and I am glad I did. At that time, 48 bucks was a lot of money but that isn't so now. I don't expect a split any time soon but I could be wrong.
I didn't own PFE at that time. I always miss those kind of gains. Going up $400 in six months sure beats 2.9% every eight days.
It has treated me okay for about three years now. My broker downgraded it to a hold the day after I bought it so I am holding. LOL. Like you, I am building a portfolio of dividend payers, at 72 I am too old for the growth stuff. I am not at all bored with new all time highs every few days though.
All of that is true but it does not change the fact that if interest rates go up the price of utility shares will go down. It seems some here think I am knocking utes but I am not. I am simply saying there is risk involved with utilities as with all equity investments. I am also retired since 1996 and receive dividend income and I continue investing in two utilities, LNT and SO and I plan to continue but I also understand risk is involved.
I have no idea when rates will increase but I know they will. No price appreciation in the next five years is not the worst case, far from it. Your prediction for 10+ years is likely correct but if rates get back to 1980's levels the share price is going to take a huge hit. I have no plans to sell but if interest rates go up the share price is going to take a hit.
Who said it was a REIT? The fact is, utility stock share prices are interest rate sensitive. If I can get a comparable or higher return on a savings account, why would I want even the small risk that comes from an investment in utility or other equity paying out an equal or lesser dividend?
I like utilities too but have you considered what will happen when interest rates get back to normal?