Shares ofJohnson & Johnson (
) are near record highs, even after the company's reputation took
The U.S. Justice Department announced Nov. 4 a settlement of
more than $2.2 billion with the company to resolve criminal and
civil charges of illegal marketing of medications.
J&J's Janssen Pharmaceuticals subsidiary pleaded guilty to
promoting the antipsychotic drug Risperdal for unapproved uses.
The settlement, which involved other drugs, also imposed a
Corporate Integrity Agreement "designed to increase
accountability and transparency and prevent future fraud and
abuse," the Justice Department said.
J&J said the settlement was "previously accrued" and it
will not result in an additional charge to earnings.
Johnson & Johnson -- which also makes Tylenol, Band-Aid,
diagnostic devices and other health care products -- has a solid
It pays 66 cents a share each quarter, good for an annualized
yield of nearly 3%. J&J is part of the S&P 500 Dividend
Aristocrats, an index of companies that have increased payouts
for at least 25 straight years.
In its latest quarterly results, announced Oct. 15, J&J
earned $1.36 a share, up 9% and above estimates. Sales rose 3% to
$17.58 billion, also above views.
The pharmaceutical business led the quarter's growth, up
Some new drugs are exceeding high expectations. Sales of
prostate-cancer drug Zytiga surged 75% year over year to $464
million. The immunology drugs Simponi and Stelara grew 47% and
29%, respectively. But the medical devices and diagnostics
division shed 2%.
The stock is forming a base with a possible buy point at
94.52. In January, J&J shares climbed above the 72 price
level -- only the second time since September 2008.