Johnson and Johnson Stock is widely held by small investors and institutional investors. It is the world’s most comprehensive, broad-based health care products manufacturer. It serves consumer, pharmaceutical, medical devices and diagnostics markets. Johnson and Johnson Stock has seen 28 consecutive years of earnings increases adjusted for special items and 50 consecutive years of dividend increases. In 1972 Johnson and Johnson stock dividend was just .009315. Today Johnson and Johnson stock pays an annual dividend of $2.25. Book value is $20.95 per share and cash flow is $4.78 per share. Johnson and Johnson is well-managed but it is not seeing substantial growth. Meanwhile with a Price to Earnings of 17.3 times it trades at a slight discount to other stocks in the diversified pharmaceuticals industry. Profit margin is 15.55% which is above the industry average of 11.7%.
Johnson and Johnson stock debt to capital ratio is low at 24% and its dividend payout ratio of 61.7 X is in line with the industry. Johnson and Johnson’s market cap is 209.2 billion and has revenue of 67.2 billion making it the 8th largest pharmaceutical company in the world.It is also the fifth largest global biologic company, the sixth largest global consumer health company and the world’s largest diverse medical devices and diagnostics company. Johnson and Johnson stock trades on the New York Stock Exchange and the company operates in 60 countries with its head office in New Brunswick, New Jersey. Stock symbol is JNJ Stock.
Johnson and Johnson Stock Strategy For 2013
The investment strategy for Johnson and Johnson stock takes into account the trading range the stock was in for much of 2012. Johnson and Johnson Stock increased 10.3% in 2012 and with the dividend, investors enjoyed a 14% gain. My strategy of Put Selling, a few stock trades and covered calls returned 16.1% in 2012 without ever earning the dividend. For 2012 JNJ Stock was easy to trade. I am expecting much of the same in 2013.
Johnson and Johnson Stock 2012 Weekly Stock Chart
My strategy for 2013 will remain unchanged from 2012. I will be primarily put selling and when appropriate buying the stock on pullbacks to take advantage of the trading range and selling the stock as it moves back up to the top end of its trading range. If assigned shares I will sell covered calls to be exercised out of the stock and then repeat the above cycle in Johnson and Johnson Stock.
| Review Johnson and Johnson Stock Trades For 2012 Review Johnson and Johnson Stock Trades For 2011 Review Johnson and Johnson Stock Trades For 2010 Review Johnson and Johnson Stock Trades For 2009 Johnson and Johnson Stock Trades For 2013Current JNJ Stock Status – Year 5Capital Currently In Use: $85020.00 |
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| Date | Stock At Time Of Trade |
Action Taken (All Figures Are US Dollars) ACTIVE TRADES ARE HIGHLIGHTED |
Comm. | Shares Held |
Capital In Use |
Gain/Loss | Total Income |
| Dec 31 2012 | 69.22 | Bought 500 shares at $69.22 using the Bollinger Bands Strategy Trade Comments: To understand this trade read this article. (status: Sold Jan 2 – $71.02) |
5.00 | 500 | (34615.00) | ||
| Dec 31 2012 | 69.22 | Sold 5 naked puts Johnson and Johnson Stock 16MAR13 $67.50 for $1.05 Comments: To understand this trade read this article. (Status: BTC Feb 8 for .05) |
10.00 | 33763.25 | 515.00 | 28153.00 | |
| Above are the final positions from 2012 that are being held into 2013 | |||||||
| ALL TRADES BELOW ARE IN 2013 | |||||||
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| Jan 2 | 71.02 | Sold 500 shares of JNJ Stock at $71.02 Comments: To understand this trade read this article. |
5.00 | 0 | 35505.00 | 890.00 | 29043.00 |
| Jan 2 | 71.02 | Sell To Open (STO) Put Selling 5 Johnson and Johnson Stock Naked Puts 20APR13 $72.50 Strike for $2.40 (status: expired) |
10.00 | 36260.00 | 1190.00 | 30233.00 | |
| Jan 9 | 71.60 | Sell To Open (STO) Put Selling 5 Johnson and Johnson Stock Naked Puts 20APR13 $75 Strike for $4.40 (status: expired) Comments: Now Using The Put Selling Strategy: Walk That Profit Home To Momma. Read this article to understand this Put Selling strategy. |
10.00 | 37510.00 | 2190.00 | 32423.00 | |
| Jan 22 | 72.45 | Sell To Open (STO) Put Selling 5 Johnson and Johnson Stock Naked Puts 16FEB13 $72.50 Strike for $0.85 (Status: closed Feb 8 for .02) | 10.00 | 36260.00 | 415.00 | 32838.00 | |
| Feb 8 | 75.48 | Buy To Close (BTC) 5 Johnson and Johnson Stock Naked Puts 16FEB13 $72.50 for .02 | 10.00 | (20.00) | 32818.00 | ||
| Feb 8 | 75.48 | Buy To Close (BTC) 5 Johnson and Johnson Stock Naked Puts 16MAR13 $67.50 for .05 | 10.00 | (35.00) | 32783.00 | ||
| Feb 11 | 75.15 | Sell To Open (STO) 5 Johnson and Johnson Stock Naked Puts 20APR13 $77.50 strike for $3.05 (status: expired) |
10.00 | 38760.00 | 1515.00 | 34298.00 | |
| Apr 8 | 80.45 | Sell To Open (STO) Put Selling 3 Johnson and Johnson Stock Naked Puts 18MAY13 $80 Strike for $1.37 (status: expired) |
8.00 | 24008.00 | 403.00 | 34701.00 | |
| Apr 19 | 84.49 | April Options Expiry $72.50, $77.50 and $75 puts expired | |||||
| May 17 | 88.09 | May Options Expiry $80 naked puts expired | |||||
| May 31 | 84.27 | Sell To Open (STO) Put Selling 5 Johnson and Johnson Stock Naked Puts 22JUN13 $85 Strike for $1.25 (status: BTC Jun 18 for .25) | 10.00 | 42510.00 | 615.00 | 35316.00 | |
| Jun 18 | 86.00 | Buy To Close (BTC) 5 JNJ Stock 22JUN13 $85 strike for .25 | 10.00 | (135.00) | 35181.00 | ||
| Jun 20 | 82.25 | Sell To Open (STO) Put Selling 5 Johnson and Johnson Stock Naked Puts 20JUL13 $82.50 Strike for $1.55 (status: BTC Jun 27 for .15) | 10.00 | 41260.00 | 765.00 | 35946.00 | |
| Jun 26 | 86.00 | Sell To Open (STO) Put Selling 5 Johnson and Johnson Stock Naked Puts 17AUG13 $87.50 Strike for $2.25 (status: BTC Jun 18 for .25) (now using the Walk That Profit Home To Momma Strategy – read this Feb 2013 article to understand the strategy) |
10.00 | 43760.00 | 1115.00 | 37061.00 | |
| Jun 27 | 87.60 | Buy To Close (BTC) 5 JNJ Stock 20JUL13 $82.50 strike for .15 | 10.00 | (85.00) | 36976.00 | ||
| Jul 8 | 88.00 | Sell To Open (STO) Put Selling 5 Johnson and Johnson Stock Naked Puts 17AUG13 $90.00 Strike for $2.85 – continuation of the Walk that Profit Home to Momma Strategy. (status: BTC Jun 18 for .25) |
10.00 | 45010.00 | 1415.00 | 38391.00 | |
| Aug 1 | 94.00 | End of Walk That Profit Home To Momma Strategy – stock overvalued in my opinion above $90. Closed all my trades. Will wait for the stock to fall back lower. Buy To Close (BTC) 5 naked puts 17AUG13 $87.50 strike for .5 cents |
10.00 | (35.00) | 38356.00 | ||
| Aug 1 | 94.00 | Buy To Close (BTC) 5 naked puts 17AUG13 $90.00 strike for .10 cents | 10.00 | (60.00) | 38296.00 | ||
| Aug 21 | 89.33 | Sell To Open (STO) Put Selling 5 Johnson and Johnson Stock Naked Puts 21SEP13 $87.50 Strike for $0.97 (status: expired) Read the trade alert for this trade |
10.00 | 43760.00 | 475.00 | 38771.00 | |
| Aug 21 | 88.85 | Sell To Open (STO) Put Selling 5 Johnson and Johnson Stock Naked Puts 19OCT13 $85.00 Strike for $1.04 (status: expired) Read the trade alert for this trade |
10.00 | 42510.00 | 510.00 | 39281.00 | |
| Aug 23 | 87.35 | Bought 500 shares Johnson and Johnson Stock (sold Aug 23 for $88.35) | 5.00 | 500 | (43680.00) | ||
| Aug 26 | 88.35 | Sold 500 shares Johnson and Johnson Stock for $88.35 | 5.00 | 0 | 44170.00 | 490.00 | 39771.00 |
| Sep 20 | 89.68 | Sept Options Expiry: $87.50 naked puts expired | |||||
| Sep 25 | 87.08 | Comments: This article discusses a number of put selling strategies for JNJ Stock | |||||
| Sep 30 | 86.25 | Sell To Open (STO) Put Selling 5 Johnson and Johnson Stock Naked Puts 22NOV13 $85.00 Strike for $1.25 | 5.00 | 42510.00 | 615.00 | 40386.00 | |
| Oct 9 | 85.65 | Sell To Open (STO) Put Selling 5 Johnson and Johnson Stock Naked Puts 22NOV13 $85.00 Strike for $1.35 | 5.00 | 42510.00 | 665.00 | 41051.00 | |
| Oct 18 | 91.63 | Oct Options Expiry: $85 naked puts expired | |||||
Johnson and Johnson Stock Internal LinksReview Johnson and Johnson Stock Trades for 2013 Review Johnson and Johnson Stock Trades for 2012 Review Johnson and Johnson Stock Trades for 2011 Review Johnson and Johnson Stock Trades for 2010 Review Johnson and Johnson Stock Trades for 2009 Review Johnson and Johnson Stock Strategy Articles Review Johnson and Johnson Stock Members Strategy Articles Hide and Seek Covered Calls Strategy For Long-Term Holdings On JNJ Stock Johnson and Johnson Stock External LinksJohnson and Johnson Stock Investors Relations |
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