Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model. The Dow Jones Industrial Average ( ^DJI) is trading down 72.0 points (-0.5%) at 13,100 as of Thursday, Aug 23, 2012, 10:34 a.m. ET. During this time, 145.8 million shares of the 30 Dow components have changed hands vs. an average daily trading volume of 661.9 million. The NYSE advances/declines ratio sits at 1,056 issues advancing vs. 1,737 declining with 151 unchanged.
Friday, August 24, 2012 is the ex-dividend date for Dow component Johnson & Johnson (NYSE: JNJ). Owners of shares as of market close today will be eligible for a dividend of 61 cents per share. At a price of $67.83 as of 10:35 a.m. ET, the dividend yield is 3.6% compared to the average Dow component yield of 2.8%.
The average volume for Johnson & Johnson has been 15.4 million shares per day over the past 30 days. Johnson & Johnson has a market cap of $188.44 billion and is part of the health care sector and drugs industry. Shares are up 3.4% year to date as of Wednesday's close. Johnson & Johnson, together with its subsidiaries, engages in the research and development, manufacture, and sale of various products in the health care field worldwide. The company has a P/E ratio of 21.5, below the average drugs industry P/E ratio of 21.7 and above the S&P 500 P/E ratio of 17.7.
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TheStreet Ratings rates Johnson & Johnson as a buy. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, good cash flow from operations, expanding profit margins and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income.