Rather than the absolute amount of debt, you should look at long term debt-to-capitalization ratios. That gives you an indication of how much leverage a company is using to finance operations and, therefore, how much it is at risk. When JNJ is compared LTD-to-Cap against its peers, such as Pfizer and Roche, its debt level is relatively low, which I take to mean that the debt load is manageable. Because JNJ profit margins are high, they make more money from the debt than the cost of the debt. As for lower cap companies seeing share price increases, you may be comparing apples to oranges. JNJ is a huge, super-mature company, and not, therefore, considered as a growth stock. It will grow, but not rapidly. And finally, the market determines share price in the most simple of ways. It brings together those who wish to sell share and those who wish to buy shares, and it lets them agree on price. In general, the share price reflects anticipated 12-month returns, through price increase or dividends, factored by the risk involved in holding the shares. And to return to the original topic, I hope JNJ will not split anytime soon.
On the JNJ board, the entire page is filled with spam, alternating between Hillary haters and trolls for Ultimate Stock Alerts. Hard to believe anybody actually reads the boards any more, so why does anybody bother posting anything. Near as I can tell, there's only three real posters left on this board. And we're not buying the ads. As the elections heat up, it will just get worse. Once saw a cartoon with a guy carrying a sign that said "Half the people in the world are below average." I'm starting to think it's way more than that.
So, maybe you should sell your shares, take your gains or losses, whatever they may be, and reinvest in something that you like better. I'm holding, sitting on a modest gain, happy with the yield and the long history of growing the dividend. It's a big company with the resources to replace products, most likely through an acquisition. But, no reason you should stick around, if you don't have confidence in management.
That's more than enough, wouldn't have been surprised by less. The payout ratio is already pushing close to 80%, and the yield is 3.2%. The company is undergoing a long-needed restructuring and refocusing. Patient investors will be amply rewarded. Perhaps you should try to better understand the financial side of the business, if you think the increase should have been larger. This was a fiscally responsible decision.
I'm new to the T board, so previously unaware of treward. Don't think I've ever seen a poster be so wrong about so many things in such a short period of time. Is he trying to be funny?
So we missed on earnings by .02 but beat on revenues, active buying share price up nicely. I think this reflects what some analysts call "quality of earnings." In a low interest rate period, RF has diversified its sources of income nicely, tightened up on expenses, focused on a long-term strategy. Congratulations to management, but I'm having difficulty seeing share price getting north of $11 as some analysts are predicting for the 12-month period. Seems like a steep climb to me, but maybe earnings are now on track to begin rising more rapidly. Any thoughts?
Test results for RF were about average, not bad, not great, about a B+. But even that was swamped by the news that job growth continues, interpreted as meaning that the Fed will raise interest rates sooner not later. I'll be surprised if these results translate into more than a 1-cent increase in quarterly dividend. That is, after all, a 20% increase, and I don't think more than that can be justified.
turn off the lights. Until gillie's post popped up, I had an entire page of ignored posts. It's the same on other boards I visit. The spammers are just posting to each other, so I don't see the point. I hope Stock Market Video and Ultimate Stock Alerts both go broke, buried in an avalanche of spam.
May sound strange, but I'd really like to see about 10 more days just like this one. An orderly, moderate volume sell-off, take the Dow down to about 15,000. That would bring prices in line with earnings, restore some sanity to the market. And it might prevent another cataclysmic collapse.
I don't think of myself as optimistic, but I am confident that the dividend will be maintained and grown. I invest for income, not growth, and I favor large-within-sector companies with a long history of growing dividends. PG meets my criteria based on diversity of product lines, earnings balance across product lines, quality of earnings, dominance in world markets. I have a yield target of 4% for my portfolio, and PG is within range. I've followed this approach for the last 40 years, and it has served me well. If this line of thinking makes me "optimistic," I guess I can live with the label. From your angry comments, I assume that you are a growth investor. If I were a growth investor, I wouldn't invest in huge, mature companies. But if you prefer to vent your pique rather than redirect your assets, this message board is a perfect place to do it.
Maybe you should learn to read. I look for an average portfolio yield of 4%, and that means a balanced range of 3-5% yields. PG is nicely within that range. And you really need to learn to understand % changes. It is very easy to generate a large % increase from a low base. It is hard to generate a large % increase from a high base. PG's absolute dividend base value is high. A 3% increase keeps pace with inflation, cost of living, and growth of the economy. Bottom line is that I hold PG and will continue to hold it. It fits my criteria quite well. And 5-10 years out, it still will.
Dave - Like so many boards, posters are looking for an echo chamber that reinforces their own thoughts. The dominant theme of this one, as you point out, is trashing management. There seems to be little understanding of the many successful alternative approaches to investing. The knee-jerk thumbs-down responses to any viewpoint that doesn't fit with the trashing theme, without offering any real response, are just pathetic. Used to participate in good discussions on a couple of the boards. Those days are gone for good. Thanks for your post.
How much of the RF rise do you think is due to the $7.5M decision? That had to remove some uncertainty, and it's a relatively small amount of money.
That's "yahoo" not "yhoo" and inquiring minds still want to know what a "canle" is. And speaking of hanging out on the board, it only took you an hour to reply to my post, and you posted twice in response. You really don't have much to contribute, do you.
I've been building a position in WPC, for income. It's an international REIT, using the triple-net model. Here's what was reported for it today: "W.P. Carey beats by $0.19, beats on revs; guides FY15 FFO above consensus (WPC) : Reports Q4 (Dec) funds from operations of $1.19 per share, excluding non-recurring items, $0.19 better than the Capital IQ Consensus Estimate of $1.00; revenues rose 18.7% year/year to $207.7 mln vs the $166.63 mln consensus. Co issues upside guidance for FY15, sees FFO of $4.76-5.02 vs. $4.08 Capital IQ Consensus Estimate." And today the share price, in an up-market, is down 1.85% Not complaining, I'm a buyer on dips, but just have no idea how to understand the response.
Just wondering, what's a "canle?" And thanks so much for reading the closing price change to us. We need all the help we can get. Just for the record, "penny's" is the possessive case, and you wanted just the plural form, "pennies." On second thought, maybe you're not the best person to help the board keep track of RF.
The rumors about a pharma company splitting into three are about PFE, not JNJ. There is still speculation about JNJ doing a share split, but not about it doing what PFE is planning. There was such talk about JNJ back in 2012, but not now. PFE on the other hand has already put in place much of what has to be done to break itself up.
Let's see if it happens again. Here's the link you posted: http://www.federalreserve.gov/newsevents/press/bcreg/ccar_20140326.pdf If this one's removed also, has to be because Yahoo prohibits posting links.