At 128 years old,Johnson & Johnson (
) is still delivering growth and income for its shareholders.
It's not Band-Aid bandages and baby oil that's driving growth
for the New Brunswick, N.J.-based health-care giant. Out of its
three operating units, its pharmaceuticals segment has showed
consistent growth in recent quarters. Last year, pharmaceuticals
accounted for about 39% of total sales. That's up a touch from
38% in 2012.
In the latest four quarters, revenue from pharmaceuticals
sales rose 10% to 11.7%. The company has seen strong demand for
Remicade, a treatment for inflammatory diseases, and Velcade,
which is used for multiple myeloma. Sales of new products such as
its Zytiga prostate cancer treatment have also showed
Johnson & Johnson has delivered single-digit earnings
growth for 13 of the past 15 quarters. Sales were flat to down
slightly in a couple of periods in 2012, but grew by single
digits for seven straight quarters. Analysts polled by Thomson
Reuters see earnings rising 7% to $5.88 a share this year. Profit
is slated to rise 8% in 2015.
Johnson & Johnson is in the S&P 500 Dividend
Aristocrats index, which tracks the performance of S&P 500
stocks that have increased dividends annually for at least 25
years. The company has boosted its shareholder dividend for 52
J&J most recently announced a hike in April, when it
raised its quarterly dividend to 70 cents a share from 66 cents.
Its quarterly dividend has more than doubled in the past eight
On an annualized basis, Johnson & Johnson pays $2.80 a
share, which works out to a yield of about 2.7%. Shares of
J&J are trading near all-time highs, although the stock
remains the steady performer it has been historically.