Johnson & Johnson AAA Rated 3% Dividend Yield Good Value: Buy, Sell or Hold? | FAST Graphs

Johnson & Johnson
Johnson & Johnson’s stock price has fallen approximately 13% since the beginning of the year. However, operating earnings are expected to increase modestly while operating cash flow is expected to increase 45% or more after dropping 1% in 2020 and 9% in 2022. Nevertheless, Johnson & Johnson’s dividend is well covered and the company’s balance sheet contains enough cash and short-term investments to cover any contingent liabilities from several lawsuits on talcum powder and opioids.

From a valuation perspective, Johnson & Johnson has fallen into fair value territory, but we do not consider it dramatically undervalued. Consequently, for those investors who are looking for high quality, and above-average dividend yield approaching 3%, Johnson & Johnson may be just the ticket. The point is that the future return is expected to be positive but single digit. Considering the quality of this AAA rated behemoth with a strong balance sheet, it could be attractive to many types of investors. We consider Johnson & Johnson a solid hold and a reasonably valued buy at this time. In order to receive a true margin of safety, Johnson & Johnson would have to fall further from here which may or may not occur. Caveat emptor.

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Disclaimer: FAST Graphs is a tool designed to reveal and present information related to financial data and investment metrics. It is not intended to provide specific advice or recommendations. Instead, it offers a comprehensive view of relevant data, empowering users to make informed decisions based on their own analysis. It's your first step to a more comprehensive research and due diligence process. In short, it is a tool to think with. The opinions in this video are for informational and educational purposes only and should not be construed as a recommendation to buy or sell the stocks mentioned.

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