Johnson & Johnson is a renowned global health care company that operates in the pharmaceutical, medical devices, and consumer segments, offering a diverse range of products. With a presence in over 175 countries and regions worldwide, the company serves a broad and varied customer base.
Founding and Growth
Established in 1886 by Robert Wood Johnson and his two brothers, James Wood Johnson and Edward Mead Johnson, the company’s humble beginnings revolved around a surgical dressing called Lister’s Bandage. Over the years, Johnson & Johnson has evolved into one of the largest and most diversified health care companies, showcasing a strong commitment to innovation.
Pharmaceutical Segment
The pharmaceutical segment of Johnson & Johnson focuses on developing and marketing prescription drugs. Among their notable pharmaceutical products are Tylenol, Motrin, Band-Aids, and Stelara, which have gained significant recognition and trust among consumers.
Medical Devices Segment
In addition to pharmaceuticals, Johnson & Johnson’s medical devices segment plays a crucial role in the health care industry. The company manufactures and markets a wide range of medical devices, including Acuvue contact lenses, Ethicon surgical instruments, and DePuy orthopedic implants, catering to various medical needs.
Consumer Segment
The consumer segment of Johnson & Johnson is responsible for producing and marketing popular consumer products. From baby care items to over-the-counter medications and beauty products, some of their well-known offerings include Johnson’s Baby Oil, Neutrogena skin care products, and Listerine mouthwash.
Pros and Cons of Investing in Johnson & Johnson Stock
Investing in Johnson & Johnson stock comes with its own set of pros and cons. On the positive side, the stock offers a strong dividend yield and enjoys relatively low volatility, making it an attractive choice for value investors. Being a well-established company with a history of innovation and diversified business also adds to its appeal.
Considerations for Investors
However, potential investors should be cautious of the stock’s high valuation, exposure to regulatory risks, and the possibility of product liability lawsuits. As with any investment decision, thorough research and understanding of the risks involved are essential.
Current Stock Performance
As of July 31, 2023, the stock price of Johnson & Johnson stands at $174.00, and the company boasts a market capitalization of $453.43 billion. With a dividend yield of 2.73%, the stock continues to be of interest to investors seeking stability and dividends in their investment portfolios.
