Portfolio Update
The FiveTwenty portfolio received $164.92 in dividends in the past week. PEP and TROW paid their quarterly dividends during the week.
| Past Week Dividend | $164.92 |
| Current Quarter Dividend (Q3 2023) | $2,564.54 |
| LifeTime Dividend | $15,030.84 |
| Estimated Annual Dividend | $10,527.54 |
The capital allocation for the week of 10/01/2023 to 10/07/2023 will be used to add to our position in Johnson & Johnson (NYSE: JNJ).
JNJ – Position Update
Since our last check-in on JNJ in week 7 of 2023, the company reported Q1 2023 earnings on 04/18/2023, and Q2 2023 earnings on 07/20/2023. In addition, the share price decreased 5.4% from $164.61 to $155.75.
| TTM | Prev. Update | 10-year median | |
| Dividend Streak | 61 years | 60 years | |
| Yield | 2.98% | 2.70% | 2.64% |
| Payout Ratio | 44.70%1 | 43.80%2 | |
| P/E | 15.001 | 16.202 |
1 computed using TTM adjusted EPS of $10.38 as of Q2 2023
2 computed using TTM adjusted EPS of $10.15 as of Q4 2022
Q2 2023 earnings report
Did JNJ’s latest earnings report raise any warning flags?
JNJ has posted a strong start to FY 2023 with revenues and earnings increasing both in Q1 and Q2 2023 compared to the same periods in 2022. In Q2 2023, sales increased in all regions and across all of the companies operating segments.
Overall, revenues increased 6.3%, adjusted net income grew 6.5%, and adjusted EPS were 8.1% higher.
| Revenue (in millions) | Adj. Net Income (in millions) | Adj. EPS . | |
| Q2 2022 | $24,020 | $6,912 | $2.59 |
| Q2 2023 | $25,530 | $7,358 | $2.80 |
| % Change | 6.3% | 6.5% | 8.1% |
Looking ahead, as part of the Q2 2023 earnings report JNJ increased guidance for operational sales growth to 6.0% to 7.0% from the previous guidance of 4.5% to 5.5%. In addition, full year adjusted EPS guidance was also increased to a range of $10.70 to $10.80 from the previous $10.60 to $10.70.
Thesis
Why are we adding to our position in JNJ?
After the recent drop in the share price, JNJ shares are trading close the 52-week lows of $150.11 seen earlier this year in March 2023. This provides an attractive point to increase our position in the company.
Previous Articles
- 2023 Week 7: Johnson & Johnson (NYSE: JNJ)
- 2023 Week 6: Johnson & Johnson (NYSE: JNJ)
- 2022 Week 33: Johnson & Johnson (NYSE: JNJ)
- 2022 Week 32: Johnson & Johnson (NYSE: JNJ)
- 2021 Week 17: Johnson & Johnson (NYSE: JNJ)
- 2021 Week 14: Johnson & Johnson (NYSE: JNJ)
Additional Research
- Johnson & Johnson: The Bull Case Can No Longer Be Ignored (NYSE:JNJ) | Seeking Alpha
- Johnson & Johnson Increases Dividend: What Shareholders Need To Know – Sure Dividend
Photo by Christina Victoria Craft on Unsplash