Saturday, June 20, 2009

My Largest Dividend Reinvestment Plan (DRIP): Johnson & Johnson (JNJ)

I have carried my Johnson & Johnson (JNJ) dividend reinvestment plan since 2005. While the stock market has seen tumultuous times, I haven't in my JNJ position. Factoring in dividends, I have lost just 6% of my investment compared with an approximate 19% loss I would have experienced if I invested in the S&P 500.

JNJ is my largest DRIP. I bought it originally through (since taken over by I was able to establish my JNJ DRIP without ever using a broker. Subsequent cash and dividend investments in JNJ are not charged any fees. Only reoccurring investments are charged a $1 fee.

CBS Marketwatch seems to like JNJ also. Here's a recent Marketwatch video that emphasizes that JNJ may be a "Buy" now.

Morningstar details on JNJ:

Morningstar Rating: 5 stars
Economic Moat: Wide
Last Price (COB Fri, 19 Jun): $56.09
Consider Buying: $64
Fair Value: $80
Consider Selling: $100

JNJ is selling 12.4% below Morningstar's consider buying price.

If you are interested in establishing a DRIP in JNJ check out Computershare for further details.

No comments: