+- Dividend Growth Forum (http://DividendGrowthForum.com)
+-- Forum: Dividend Growth Investing (http://DividendGrowthForum.com/forumdisplay.php?fid=15)
+--- Forum: Individual Dividend Growth Stocks (http://DividendGrowthForum.com/forumdisplay.php?fid=35)
+--- Thread: JNJ Earnings Beat and Upcoming Dividend Raise (/showthread.php?tid=506)
JNJ Earnings Beat and Upcoming Dividend Raise - TomK - 04-15-2014
JNJ's Q1 earnings came in very healthy indeed -- $1.64 per share (or $1.54 per share, excluding one-time items). They also raised full-year 2014 guidance to a range of $5.80 to $5.90 per share. This would represent a 20% earnings increase over 2013 (which was a 24% increase over 2012).
They will be announcing the next dividend increase later this month. I am hoping that the earnings improvement sets the stage for a nice dividend increase! Anyone want to hazard a guess?
I think a new dividend of .71 is the smallest raise they would consider (up from the current .66) -- it would be on par with last year's raise. With the earnings improvement, it is hard to imagine they'd offer a more stingy raise than last year.
They could go as high as 75 cents a share and still keep the payout ratio at or below 50%. That would be by far the largest raise in five years, but the payout ratio would still be on the decline. While I suppose this scenario is possible, I imagine they will want to keep a little powder dry for next year's dividend raise, and will assume (rightly) that shareholders would be very happy with a smaller raise than that.
I think they'll settle on 72 or 73 cents per share. I hope for 73, but I'll make 72 cents my "official" guess. I'd rather be pleasantly surprised than disappointed.
RE: JNJ Earnings Beat and Upcoming Dividend Raise - earthtodan - 04-15-2014
Man. I have $5k with JNJ's name on it waiting for a better price, and it looks like that may not happen.
RE: JNJ Earnings Beat and Upcoming Dividend Raise - rnsmth - 04-15-2014
JNJ is one of my largest positions. I am pleased- the first and largest lot is up over 40%
RE: JNJ Earnings Beat and Upcoming Dividend Raise - Roadmap2Retire - 04-15-2014
(04-15-2014, 10:20 AM)earthtodan Wrote: Man. I have $5k with JNJ's name on it waiting for a better price, and it looks like that may not happen.
Same here (Although I wouldnt pour in $5K in one go), I would add to my position in increments of $1500-$2000.
RE: JNJ Earnings Beat and Upcoming Dividend Raise - TomK - 04-15-2014
(04-15-2014, 11:28 AM)rnsmth Wrote: JNJ is one of my largest positions. I am pleased- the first and largest lot is up over 40%
My first purchase of JNJ was in 2009 at about $48 per share.
My average price per share is about $61. Not too shabby. The stock just languished for years (2009 through 2012) with all of the recall problems and management issues before taking off last year. Turns out that was a good time to be accumulating.
RE: JNJ Earnings Beat and Upcoming Dividend Raise - Kerim - 04-15-2014
I haven't done much deep analysis or thinking on this, but I'll throw my hat in the ring for 74!