Should You Buy Johnson & Johnson Stock in October?


JNJ stock's always been a good pick for the long-term healthcare investor, though short-run price volatility is likely



With a market cap of $340 billion, Johnson & Johnson (NYSE:JNJ), the healthcare giant, is currently number 37 on the Fortune 500 list. Over the past 12 months, JNJ stock is down about 7%. This compares to a more than 16% drop in the iShares U.S. Pharmaceuticals ETF (NYSEArca:IHE) which includes JNJ shares at a whopping 22.6% weighting among its 45-stock portfolio.

In August, the consumer and pharmaceutical healthcare firm made the news when an Oklahoma judge found Johnson and Johnson guilty of helping fuel the state’s opioid crisis by aggressively marketing painkillers. The ruling came amid various lawsuits that the company faces regarding its talc-based baby powder.



Now many investors are wondering whether there could be more headaches ahead for the company and how the JNJ stock price might fare in the last quarter of the year. Until its next earnings report in mid-October, I expect JNJ shares to trade between a range, mostly $120-$130. Long-term investors may regard any upcoming weakness in the Johnson & Johnson stock price as opportunity to buy into the shares.



Week's Most Significant Insider Trades: Week of September 23, 2019



Disposals:



Chubb Ltd (NYSE:CB) EVP Joseph F. Wayland sold 6,500 shares of the stock in a transaction dated Friday, September 20th. The shares were sold at an average price of $158.05, for a total transaction of $1,027,325.00. Following the sale, the executive vice president now directly owns 77,201 shares in the company, valued at $12,201,618.05. The sale was disclosed in a filing with the SEC, which is accessible through this hyperlink.
CB opened at $158.84 on Wednesday. The company has a debt-to-equity ratio of 0.25, a quick ratio of 0.32 and a current ratio of 0.32. The stock has a market capitalization of $71.86 billion, a P/E ratio of 16.83, a P/E/G ratio of 1.52 and a beta of 0.69. The company’s 50-day simple moving average is $157.07 and its two-hundred day simple moving average is $147.59. Chubb Ltd has a 52-week low of $119.54 and a 52-week high of $162.19. Read more …

Eli Lilly And Co (NYSE:LLY) SVP Alfonso G. Zulueta sold 4,500 shares of the company’s stock in a transaction that occurred on Friday, September 20th. The shares were sold at an average price of $117.00, for a total value of $526,500.00. Following the completion of the sale, the senior vice president now owns 33,806 shares of the company’s stock, valued at $3,955,302. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link.
LLY opened at $113.25 on Wednesday. Eli Lilly And Co has a one year low of $104.17 and a one year high of $132.13. The stock has a market capitalization of $109.62 billion, a PE ratio of 20.41, a P/E/G ratio of 2.01 and a beta of 0.16. The business’s 50 day moving average price is $112.34 and its 200 day moving average price is $116.13. The company has a debt-to-equity ratio of 4.98, a quick ratio of 0.87 and a current ratio of 1.13. Read more …

Ross Stores, Inc. (NASDAQ:ROST) insider James S. Fassio sold 15,000 shares of the business’s stock in a transaction dated Thursday, September 19th. The shares were sold at an average price of $108.66, for a total value of $1,629,900.00. The sale was disclosed in a filing with the SEC, which is accessible through this hyperlink.

James S. Fassio also recently made the following trade(s):
On Friday, July 12th, James S. Fassio sold 85,238 shares of Ross Stores stock. The shares were sold at an average price of $104.85, for a total value of $8,937,204.30.

Shares of ROST stock opened at $107.03 on Tuesday. Ross Stores, Inc. has a 12-month low of $75.91 and a 12-month high of $110.88. The company has a current ratio of 1.31, a quick ratio of 0.63 and a debt-to-equity ratio of 0.85. The stock’s 50-day moving average price is $105.80 and its 200-day moving average price is $99.97. The stock has a market capitalization of $39.29 billion, a price-to-earnings ratio of 25.12, a price-to-earnings-growth ratio of 2.30 and a beta of 0.84. Read more …





Omega Healthcare Investors Inc (NYSE:OHI) CAO Michael Ritz sold 2,500 shares of the business’s stock in a transaction dated Wednesday, September 25th. The stock was sold at an average price of $42.00, for a total value of $105,000.00. Following the transaction, the chief accounting officer now owns 5,485 shares in the company, valued at approximately $230,370. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link.

Michael Ritz also recently made the following trade(s):
On Friday, August 23rd, Michael Ritz sold 5,000 shares of Omega Healthcare Investors stock. The stock was sold at an average price of $40.50, for a total value of $202,500.00.

NYSE:OHI opened at $42.01 on Friday. The company has a debt-to-equity ratio of 1.17, a quick ratio of 2.78 and a current ratio of 2.78. Omega Healthcare Investors Inc has a one year low of $31.69 and a one year high of $42.25. The business’s 50-day simple moving average is $40.23 and its 200 day simple moving average is $37.57. The stock has a market cap of $9.01 billion, a price-to-earnings ratio of 13.82, a price-to-earnings-growth ratio of 5.47 and a beta of 0.37. Read more …

Darden Restaurants, Inc. (NYSE:DRI) SVP Douglas J. Milanes sold 1,600 shares of the stock in a transaction on Wednesday, September 25th. The shares were sold at an average price of $119.05, for a total transaction of $190,480.00. Following the transaction, the senior vice president now directly owns 6,793 shares in the company, valued at approximately $808,706.65. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink.
Shares of NYSE DRI opened at $116.44 on Friday. Darden Restaurants, Inc. has a 1 year low of $95.83 and a 1 year high of $128.41. The stock has a market cap of $14.50 billion, a P/E ratio of 20.01, a price-to-earnings-growth ratio of 2.08 and a beta of 0.34. The firm has a 50-day moving average of $121.60 and a 200 day moving average of $119.95. The company has a debt-to-equity ratio of 2.18, a current ratio of 0.43 and a quick ratio of 0.30. Read more …


Acquisitions:



Nothing to mention!


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Notable Analyst Upgrades and Downgrades for Week of September 23, 2019



Upgrades:



Kimberly Clark (NYSE:KMB) was upgraded by stock analysts at Barclays from an “equal weight” rating to an “overweight” rating in a research report issued to clients and investors on Monday, The Fly reports.

KMB has been the topic of several other reports. Zacks Investment Research raised Kimberly Clark from a “hold” rating to a “buy” rating and set a $149.00 target price on the stock in a report on Thursday, August 22nd. Bank of America reissued a “neutral” rating and set a $143.00 target price (up from $135.00) on shares of Kimberly Clark in a report on Wednesday, June 19th. ValuEngine lowered Kimberly Clark from a “buy” rating to a “hold” rating in a report on Thursday, August 1st. Wells Fargo & Co reissued a “hold” rating and set a $130.00 target price on shares of Kimberly Clark in a report on Tuesday, July 23rd. Finally, Morgan Stanley increased their target price on Kimberly Clark from $145.00 to $147.00 and gave the stock an “equal weight” rating in a report on Wednesday, July 24th. Two analysts have rated the stock with a sell rating, seven have issued a hold rating and seven have given a buy rating to the stock. The company currently has an average rating of “Hold” and an average price target of $131.36. Read more …

Guggenheim upgraded shares of Sanofi (NYSE:SNY) from a neutral rating to a buy rating in a research note issued to investors on Monday, BenzingaRatingsTable reports.

Several other equities analysts also recently weighed in on the company. Jefferies Financial Group reiterated a buy rating on shares of Sanofi in a research report on Thursday, August 29th. Sanford C. Bernstein initiated coverage on Sanofi in a research report on Tuesday, September 3rd. They set an outperform rating and a $52.00 target price on the stock. UBS Group upgraded Sanofi from a neutral rating to a buy rating in a research report on Wednesday, August 14th. JPMorgan Chase & Co. restated a neutral rating on shares of Sanofi in a report on Tuesday, August 6th. Finally, Zacks Investment Research upgraded Sanofi from a hold rating to a buy rating and set a $47.00 price objective on the stock in a report on Thursday, August 29th. Four investment analysts have rated the stock with a hold rating and seven have issued a buy rating to the company’s stock. Sanofi currently has a consensus rating of Buy and an average target price of $49.67. Read more …

Jefferies Financial Group upgraded shares of Apple (NASDAQ:AAPL) from a hold rating to a buy rating in a research report report published on Tuesday morning, The Fly reports. Jefferies Financial Group currently has $260.00 price objective on the iPhone maker’s stock, up from their prior price objective of $210.00.

Several other brokerages also recently commented on AAPL. Longbow Research reiterated a hold rating on shares of Apple in a research note on Tuesday, September 10th. Raymond James upgraded Apple from a market perform rating to an outperform rating and set a $250.00 price target on the stock in a research note on Thursday, July 18th. Goldman Sachs Group dropped their price target on Apple from $187.00 to $165.00 and set a neutral rating on the stock in a research note on Friday, September 13th. Monness Crespi & Hardt restated a buy rating and issued a $265.00 price target (up from $245.00) on shares of Apple in a research note on Wednesday, July 31st. Finally, Needham & Company LLC raised their price target on Apple from $225.00 to $250.00 and gave the stock a strong-buy rating in a research note on Wednesday, September 11th. Four research analysts have rated the stock with a sell rating, seventeen have given a hold rating, twenty-four have issued a buy rating and one has issued a strong buy rating to the company. The stock presently has a consensus rating of Hold and an average price target of $219.47. Read more …


Bank of America upgraded shares of Bank of Nova Scotia (NYSE:BNS) (TSE:BNS) from a neutral rating to a buy rating in a research note published on Tuesday, BenzingaRatingsTable reports. The brokerage currently has $62.00 price target on the bank’s stock, up from their previous price target of $52.00.

Other equities research analysts have also recently issued research reports about the stock. Zacks Investment Research cut shares of Bank of Nova Scotia from a buy rating to a hold rating in a research note on Thursday, August 29th. ValuEngine cut shares of Bank of Nova Scotia from a hold rating to a sell rating in a research note on Tuesday, July 2nd. Barclays reaffirmed an average rating and issued a $78.00 price objective on shares of Bank of Nova Scotia in a research note on Thursday, May 30th. BMO Capital Markets cut their price objective on shares of Bank of Nova Scotia from $80.00 to $78.00 and set an outperform rating for the company in a research note on Wednesday, August 28th. Finally, Canaccord Genuity reaffirmed a hold rating on shares of Bank of Nova Scotia in a research note on Wednesday, August 28th. One analyst has rated the stock with a sell rating, seven have given a hold rating and three have assigned a buy rating to the stock. The company presently has an average rating of Hold and a consensus target price of $74.14. Read more …

It might be time to focus on prescriptions




Created through the combination of Walgreens and Alliance Boots in 2014, Walgreens Boots Alliance is a leading pharmacy retailer and drug distributor in the world. It is the largest retail pharmacy across the USA and Europe. The company also has a presence in 25 other countries

Walgreens’ operations can be organized into three segments – Retail Pharmacy USA is the largest accounting for ~75% of 2018 revenue (prescription drugs and general merchandise), Retail Pharmacy International (9% – prescription drugs and retail health, beauty, toiletries, and other consumer products) and Pharmaceutical Wholesale (16% – wholesaling and distribution of brand-name pharmaceuticals). Its retail segment consists of 18,500 stores operating in 11 countries with over 390 distribution centers.



Walgreens has a huge portfolio of iconic brands like Walgreens, Duane Reade (U.S.), Boots and Alliance Healthcare, as well as health and beauty product brands such as No7, Botanics, Liz Earle, and Soap & Glory.