Texas Instruments and Other Overlooked Dividend Aristocrat Stocks
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 13 2024
0mins
Source: Barron's
Dividend Growth Indices: The S&P 500 Dividend Aristocrats Index and the S&P High Yield Dividend Aristocrats Index provide reliable options for income-seeking investors, with the latter including a broader range of small- and mid-cap stocks that have increased dividends for at least 20 years.
Investment Considerations: While smaller-cap dividend-paying companies can offer attractive growth potential, investors should be cautious due to variability in earnings and potential debt issues; ETFs like SPDR S&P Dividend (SDY) and ProShares Russell 2000 Dividend Growers (SMDV) are suggested for exposure to these stocks.
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Analyst Views on JNJ
Wall Street analysts forecast JNJ stock price to fall
20 Analyst Rating
13 Buy
7 Hold
0 Sell
Moderate Buy
Current: 253.980
Low
190.00
Averages
218.50
High
240.00
Current: 253.980
Low
190.00
Averages
218.50
High
240.00
About JNJ
Johnson & Johnson and its subsidiaries are engaged in the research and development, manufacture, and sale of a range of products in the healthcare field. The Company’s segments include Innovative Medicine and MedTech. The Innovative Medicine segment is focused on various therapeutic areas, including immunology, infectious diseases, neuroscience, oncology, pulmonary hypertension, cardiovascular and metabolism. Its products include REMICADE (infliximab), SIMPONI (golimumab), SIMPONI ARIA (golimumab), STELARA (ustekinumab), TREMFYA (guselkumab), EDURANT (rilpivirine), and INVEGA SUSTENNA/XEPLION (paliperidone palmitate). The MedTech segment includes a portfolio of products used in cardiovascular, orthopedics, surgery, and vision categories. The Cardiovascular portfolio includes electrophysiology products to treat heart rhythm disorders and circulatory restoration products (Shockwave) for the treatment of calcified coronary artery disease (CAD) and peripheral artery disease (PAD).
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Rising Medicare Costs and Investment Strategies
- Rising Medicare Costs: The standard monthly premium for Medicare Part B in 2026 is set at $202.90, reflecting a $17.90 increase from 2025, leading to an annual cost nearing $5,000, which continues to exert financial pressure on retirees.
- Investment Requirement Analysis: To cover the annual $5,000 healthcare bill, investors need approximately $143,000 in capital at a 3.5% yield or about $100,000 at a 5% yield, highlighting the urgent need for stable income sources in retirement planning.
- Yield Comparison: An investment portfolio yielding 3.5% can grow a $5,000 income stream to $19,300 over 20 years, while a 10% yield portfolio remains flat at $5,000, underscoring the significance of long-term investment and compounding returns.
- Retirement Income Planning: Retirees should focus on breaking down healthcare costs, ensuring coverage for Medicare expenses first before addressing other expenditures, thereby optimizing financial management and alleviating economic burdens.
See More
Johnson & Johnson's CEO Focuses on Cancer Drugs Over Weight Loss Market
- Strategic Shift: CEO Joaquin Duato of Johnson & Johnson has stated that the company will not engage in the GLP-1 weight loss drug race, instead focusing on oncology and its large medical device business, a strategic shift aimed at reducing reliance on a single market and enhancing long-term stability.
- Investment in Cancer Drugs: Johnson & Johnson holds a strong market position in bone and lung cancer and has recently acquired a company with an attractive prostate cancer drug candidate, which not only enriches its product line but also provides diversified growth opportunities for the company.
- Medical Device Advantage: As one of the world's largest pharmaceutical companies, Johnson & Johnson is also a giant in the medical device sector, focusing on surgical items and new joints, which allows for a diversified investment portfolio that mitigates market risks compared to pure-play drug manufacturers.
- Financial Comparison: Johnson & Johnson's P/E ratio stands at 29x, significantly lower than Eli Lilly's 40x, while offering a 2.1% dividend yield compared to Eli Lilly's 0.6%, indicating that Johnson & Johnson may present better long-term value, especially for income-focused investors.
See More
Johnson & Johnson Sidesteps GLP-1 Drug Hype
- Market Dependency Issue: Eli Lilly's weight-loss drugs account for nearly two-thirds of its revenue, indicating a high reliance on a single market that could pose financial risks in the future.
- Strategic Shift: Johnson & Johnson's CEO Joaquin Duato opts not to chase the GLP-1 hype, instead focusing on oncology, particularly in bone and lung cancer drugs, demonstrating a strong commitment to its core competencies.
- Diversification Advantage: As one of the largest pharmaceutical companies globally, J&J also holds a significant position in the medical device sector, offering products like surgical items and new joints, which enhances diversification for investors.
- Valuation Comparison: Eli Lilly's P/E ratio exceeds 40x, while J&J's stands at 29x; although J&J is not cheap, its 2.1% dividend yield is significantly more attractive than Eli Lilly's 0.6%, making it a more appealing long-term investment option.
See More
Johnson & Johnson Avoids $100 Billion Weight Loss Market
- Market Dependency Issue: Eli Lilly's weight-loss drugs account for nearly two-thirds of its revenue, indicating a high dependency on a single market that could pose future financial risks.
- Strategic Shift: Johnson & Johnson opts not to chase the hot GLP-1 drugs, instead focusing on its core competencies in oncology, particularly in bone and lung cancer medications, showcasing its potential for diversified growth.
- Investment Attractiveness Comparison: Eli Lilly's P/E ratio exceeds 40x, while Johnson & Johnson's stands at 29x; although J&J is not cheap, its more attractive 2.1% dividend yield compared to Eli Lilly's 0.6% enhances its investment appeal.
- Long-Term Growth Potential: Johnson & Johnson's strong position in the medical device sector allows it to offer investors diversified options, mitigating the risks associated with a single drug market, which may lead to more stable returns in the long run.
See More
Congress Members' Stock Trades Draw Investor Attention
- Congressional Trading Trends: Despite Johnson & Johnson's stock rising about 23% this year, Congress members have sold more shares than they bought over the past six months, indicating a cautious stance, with three members investing between $15,000 and $30,000, reflecting differing views on the healthcare sector.
- Healthcare Stock Popularity: UnitedHealth Group's shares have surged over 29%, making it a favored choice among Congress members, with Republican Senator Markwayne Mullin purchasing between $50,001 and $100,000 on February 25, demonstrating strong confidence in the company.
- Investor Caution Advised: While copying congressional trades is a popular trend, the 45-day disclosure period means retail investors often act on stale data, potentially harming their returns as the market has already adjusted to the news by the time they learn of the trades.
- Research First: Investors should view congressional disclosures as a starting point for fundamental research rather than direct buy signals, as both Johnson & Johnson and UnitedHealth Group offer over 2% dividend yields, but investment decisions should be based on current valuations and personal risk tolerance rather than political disclosures.
See More
Congress Members Actively Buy Healthcare Stocks
- Congressional Trading Trends: Rep. Lisa McClain from Michigan and two other lawmakers increased their holdings in Johnson & Johnson in 2023, with McClain purchasing up to $30,000, indicating confidence in the company's future despite other members selling off shares in the past six months.
- Strong Performance of Healthcare Stocks: Johnson & Johnson and UnitedHealth Group have seen their stocks rise approximately 23% and 29% year-to-date, respectively, highlighting their appeal to investors, particularly among congressional members, due to stable earnings growth and high dividend yields.
- Investor Focus on Insider Trading: The stock trades of Congress members are closely monitored by investors because of their roles in shaping policies that affect the healthcare sector; however, explicit insider trading is illegal under the Stock Act, yet these trades can still influence market sentiment.
- Investment Decision Recommendations: While congressional trades may signal confidence, investors should conduct independent research based on current valuations and financial health of the companies rather than relying solely on political disclosures, to avoid potential losses from market volatility.
See More
Rising Medicare Costs and Investment Strategies
- Rising Medicare Costs: The standard monthly premium for Medicare Part B in 2026 is set at $202.90, reflecting a $17.90 increase from 2025, leading to an annual cost nearing $5,000, which continues to exert financial pressure on retirees.
- Investment Requirement Analysis: To cover the annual $5,000 healthcare bill, investors need approximately $143,000 in capital at a 3.5% yield or about $100,000 at a 5% yield, highlighting the urgent need for stable income sources in retirement planning.
- Yield Comparison: An investment portfolio yielding 3.5% can grow a $5,000 income stream to $19,300 over 20 years, while a 10% yield portfolio remains flat at $5,000, underscoring the significance of long-term investment and compounding returns.
- Retirement Income Planning: Retirees should focus on breaking down healthcare costs, ensuring coverage for Medicare expenses first before addressing other expenditures, thereby optimizing financial management and alleviating economic burdens.
See More
Johnson & Johnson's CEO Focuses on Cancer Drugs Over Weight Loss Market
- Strategic Shift: CEO Joaquin Duato of Johnson & Johnson has stated that the company will not engage in the GLP-1 weight loss drug race, instead focusing on oncology and its large medical device business, a strategic shift aimed at reducing reliance on a single market and enhancing long-term stability.
- Investment in Cancer Drugs: Johnson & Johnson holds a strong market position in bone and lung cancer and has recently acquired a company with an attractive prostate cancer drug candidate, which not only enriches its product line but also provides diversified growth opportunities for the company.
- Medical Device Advantage: As one of the world's largest pharmaceutical companies, Johnson & Johnson is also a giant in the medical device sector, focusing on surgical items and new joints, which allows for a diversified investment portfolio that mitigates market risks compared to pure-play drug manufacturers.
- Financial Comparison: Johnson & Johnson's P/E ratio stands at 29x, significantly lower than Eli Lilly's 40x, while offering a 2.1% dividend yield compared to Eli Lilly's 0.6%, indicating that Johnson & Johnson may present better long-term value, especially for income-focused investors.
See More
Johnson & Johnson Sidesteps GLP-1 Drug Hype
- Market Dependency Issue: Eli Lilly's weight-loss drugs account for nearly two-thirds of its revenue, indicating a high reliance on a single market that could pose financial risks in the future.
- Strategic Shift: Johnson & Johnson's CEO Joaquin Duato opts not to chase the GLP-1 hype, instead focusing on oncology, particularly in bone and lung cancer drugs, demonstrating a strong commitment to its core competencies.
- Diversification Advantage: As one of the largest pharmaceutical companies globally, J&J also holds a significant position in the medical device sector, offering products like surgical items and new joints, which enhances diversification for investors.
- Valuation Comparison: Eli Lilly's P/E ratio exceeds 40x, while J&J's stands at 29x; although J&J is not cheap, its 2.1% dividend yield is significantly more attractive than Eli Lilly's 0.6%, making it a more appealing long-term investment option.
See More
Johnson & Johnson Avoids $100 Billion Weight Loss Market
- Market Dependency Issue: Eli Lilly's weight-loss drugs account for nearly two-thirds of its revenue, indicating a high dependency on a single market that could pose future financial risks.
- Strategic Shift: Johnson & Johnson opts not to chase the hot GLP-1 drugs, instead focusing on its core competencies in oncology, particularly in bone and lung cancer medications, showcasing its potential for diversified growth.
- Investment Attractiveness Comparison: Eli Lilly's P/E ratio exceeds 40x, while Johnson & Johnson's stands at 29x; although J&J is not cheap, its more attractive 2.1% dividend yield compared to Eli Lilly's 0.6% enhances its investment appeal.
- Long-Term Growth Potential: Johnson & Johnson's strong position in the medical device sector allows it to offer investors diversified options, mitigating the risks associated with a single drug market, which may lead to more stable returns in the long run.
See More
Congress Members' Stock Trades Draw Investor Attention
- Congressional Trading Trends: Despite Johnson & Johnson's stock rising about 23% this year, Congress members have sold more shares than they bought over the past six months, indicating a cautious stance, with three members investing between $15,000 and $30,000, reflecting differing views on the healthcare sector.
- Healthcare Stock Popularity: UnitedHealth Group's shares have surged over 29%, making it a favored choice among Congress members, with Republican Senator Markwayne Mullin purchasing between $50,001 and $100,000 on February 25, demonstrating strong confidence in the company.
- Investor Caution Advised: While copying congressional trades is a popular trend, the 45-day disclosure period means retail investors often act on stale data, potentially harming their returns as the market has already adjusted to the news by the time they learn of the trades.
- Research First: Investors should view congressional disclosures as a starting point for fundamental research rather than direct buy signals, as both Johnson & Johnson and UnitedHealth Group offer over 2% dividend yields, but investment decisions should be based on current valuations and personal risk tolerance rather than political disclosures.
See More
Congress Members Actively Buy Healthcare Stocks
- Congressional Trading Trends: Rep. Lisa McClain from Michigan and two other lawmakers increased their holdings in Johnson & Johnson in 2023, with McClain purchasing up to $30,000, indicating confidence in the company's future despite other members selling off shares in the past six months.
- Strong Performance of Healthcare Stocks: Johnson & Johnson and UnitedHealth Group have seen their stocks rise approximately 23% and 29% year-to-date, respectively, highlighting their appeal to investors, particularly among congressional members, due to stable earnings growth and high dividend yields.
- Investor Focus on Insider Trading: The stock trades of Congress members are closely monitored by investors because of their roles in shaping policies that affect the healthcare sector; however, explicit insider trading is illegal under the Stock Act, yet these trades can still influence market sentiment.
- Investment Decision Recommendations: While congressional trades may signal confidence, investors should conduct independent research based on current valuations and financial health of the companies rather than relying solely on political disclosures, to avoid potential losses from market volatility.
See More
