Lanny’s Recent Purchase – Re-up in JNJ

Well, I became more consistent and maintained my eye sight on Johnson & Johnson (JNJ) last week.  I decided to re-up on my position on Tuesday, as I had a free trade for that day and the stock price actually went in my favor.  I had wanted to increase my position to approximately $1,500 and I was able to do that with this purchase.  After this, I feel like I’d want this position even more rounded, at an even $3,000 amount.  Let’s take a look at the quick purchase:

The JNJ Purchase

I spent $792.00 to pick up an approximate ~8 shares of JNJ for $100.05 per share or 6 cents less than my last purchase 4 days prior to this!  Something about that first purchase made me realize – I should just re-up on them the next chance I had spare capital, as a 3% yield coupled with an over 7% dividend growth rate, equated to an approximate 10% dividend factor for me.

JNJ is a dividend aristocrat that has increased dividend for over 52 years and are, in my eyes, the most consistent dividend paying, dividend growing, legendary stock there is.  That is one of the reasons why I feel they are a foundation stock for a dividend income producing portfolio.  I won’t bore you with the details as you can go back to my first purchase article just less than weeks ago to check them out, but they have strong valuations from a dividend diplomat stock screener perspective.  Don’t worry I’ll stop my linking to JNJ and won’t pull a Bert move by talking about why he sold his damn ARCP investment, Bert I really think we get it now, the stock sucked, right?  Joking, joking.  But in all seriousness, I hope with reinvestment, increases and the like, this will increase my yield on cost (YOC) over time and it will be a truly fruitful investment.

Summary of Purchase: I purchased JNJ for a total of $792.00 for 7.9162 shares for $23.75 added to my annual dividend income total

Conclusion:

It’s interesting though.  Sitting here hanging with the Bert man at his & his girlfriend’s place on the west side of Cleveland.  We were talking about stock positions and I’ve been thinking about it quite a bit lately.  Shouldn’t we really get to a position we want in our portfolio for certain stocks?  I own, currently, 32 individual stocks in my dividend portfolio for my taxable account.  I’m great with that, but am sensing that I have quite a bit of “smaller” positions such as Tupperware (TUP), Rockwell Automation (ROK), Dow Chemical (DOW) and even Diageo (DEO).  I want more of them and JNJ and you know what – that’s the direction of my extra capital and where it will head.  Unless, of course, an amazing value buy comes across the table.

What is everyone’s thoughts with that?  Do you have a pre-established mark that you want to get to for an investment?  I know it’s weird, but it’s all about how much capital you have and I’ve been running dry almost every few weeks, so that’s the reason I ask, as I would have invested $3K into JNJ immediately if I had the cash, but I did not.  Thoughts everyone?  Appreciate the visit, as always, as well as your guidance and thoughts to my last paragraph above!  Keep pushing yourselves!

-Lanny

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19 thoughts on “Lanny’s Recent Purchase – Re-up in JNJ

    • Tawcan,

      Thanks for the roll by here! I’m liking JNJ at around the 2.90%+ yield mark, and am considering to continue to add over the future, until I’m at around $3K total.. we’ll see when the next time I move in (need the capital first, killing me!)

      -Lanny

    • ADD,

      I know – what’s wild is how many of us continue to purchase them up as well, we are non-stop at the moment it seems. Looking forward to owning more, that’s for sure. Thanks for coming by ADD!

      -Lanny

  1. Looks like we’ve been step in step on our JNJ adds. I bought some more last week right around 99.50. I’ve got 26 shares… and I’m looking to add 8 to 10 more if we get down around $97.50 or hopefully lower. Actually there has been some bearish activity in the name lately. Lots of puts being bought… big lots of Junes and Januarys. Of course this is probably just protection for long positions, BUT it seems to me we will probably get that dip into the mid to upper 90’s sometime this summer, if not sooner.

    As for position sizes… right now I’d like to get JNJ closer to $4,000. Here’s what I have currently in my Roth. It’s a small account, and I don’t have a lot of positions… but I’m comfortable with that. My goal is to diversify out as I get more capital.

    Below is a list of my original cost basis, this does not reflect current stock prices

    PM – 50.241 shares @ 80.73 $4,056.06
    KO – 101.385 @ 35.77 $3,626.80
    XOM – 41 shares @ 85.05 $3,487.11
    CVX – 30 shares @ 103.92 $3,117.60
    MO – 92.849 shares @ 31.93 $2,964.21
    JNJ – 26 shares @ 100.11 $2,602.88
    FB – 20 shares @ 28 $560

    So this is where I stand today… I’m looking for some fresh meat? Any thoughts?

  2. Lanny,
    Foundation stock is a good way to describe JNJ. I knew this many years ago, but for whatever reason, I never bought any. Correcting that mistake, I opened a small position earlier this year at $99.90. Since then, I’ve been waiting for a price closer to $97 or $98, and I just haven’t gotten it. Or if it did get that low, I was putting money elsewhere. Anyways, this recent dividend boost makes buying around $100 more palatable. Next dip, I plan to add more. But I’ve been saying that for a while now!

    As for the total portfolio, I have some big anchor stocks that I’ve owned for a long time. I’m trying to build up my smaller positions when prices decrease. Right now some of my holdings pay a very large a % of dividend for my total portfolio (T VZ). There’s always ways to diversify more and spread risk. My average position is $3500. But my biggest is $14000 and smallest is $250 because of dripping. I’d like to lower that spread eventually, but AAPL keeps going up!
    -RBD

  3. Lanny,

    Great purchase on JNJ. Their history is awesome, and I would love to have more of them myself. Funny you mention TUP, I am waiting to see if they increase the distribution this year. It would appear they have performed well, but the market is selling them at a relative discount right now. I really am hoping to seem them increase this year, and if I had extra cash lying around I’d think about adding to my position there.
    Congrats,
    Gremlin – long JNJ and TUP

  4. Lanny,

    JNJ is indeed a great foundation stock to build upon. I liken them to PG, KO, and MMM; all the brands you know from everyday life. My dividend portfolio is sitting at around 44 companies, yet I’m still looking to add more. I like breaking my portfolio down into sectors and making sure I am properly diversified. I’m already pretty heavy on most my stocks so I either need to find new companies or start reinvesting in my current holdings. Good luck figuring it out, i’ll be interested to see what you come up with.

    – HMB

  5. For a company like JNJ I would be willing to have as much as 8-10,000 position. As my portfolio grows, my position grows with it too, accumulating shares slowly along the road. Same goes with KO, PG, O, I am willing to stake as much as 10K as a defensive play with the quality stocks.

    Valuation for JNJ at this level is attractive, tis a good time to keep on accumulating shares before it goes high again, if it dip, Ill be happy to add some more. Thanks for sharing your recent buy Lanny and take care!

  6. Great buy – I picked up some JNJ a couple of weeks ago. In fact it was my first purchase in my retirement portfolio.

    I am currently converting a portion of my 401k to dividend growth stocks. I want to have around 30 different stocks when its all said and done and with $100k to spend, all of my positions start around $3k.

    • Empire,

      $3K are great positions to start, low cost and you can generate a very solid amount of income and at an average yield from the investment. Thoughts on re-upping on JNJ or have you fully used all positions for the $100K?

      -Lanny

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