(JNJ - Get Report)
Background: Johnson & Johnson works with partners in health care all over the world. It is the world's sixth-largest consumer health company and the world's largest and most diverse medical devices and diagnostics company.
52-Week Range: $61.71 to $72.74
Price to Book: 3.4Earnings Payout Percentage: 77% J&J is an old school dividend stock with an up-trending stock price attitude. A yield of 3.4% is attractive enough to keep J&J always on my watchlist, but I have written about the company many times because of the stock performance. J&J is a great one to buy on dips, or to write put options to gain entry. Based on technical analysis of the weekly price chart, last week was a break-out week in price. That means this week we will look for a retracement, and if it happens, we will have a relatively low risk entry point. The March $70 strike put option can be sold for about $1, resulting in a cost basis of $69 per share. If you look at the daily price chart, the dips in price generally have found price support near $69 per share.
If the shares don't fall below the exercise price, the return is about 1.4% over two and half months' time. Shares have traded slightly lower in the last month of trading. Shares are near even at 1.8% less than a month ago. Analysts as a whole like this company. Currently, J&J has 14 buy recommendations out of 26 analysts covering the company, along with 11 holds and one sell rating. The stock appreciated 9.4% in the last year, and the average analyst target price for J&J is $75.82. JNJ Payout Ratio TTM data by YCharts