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Yesterday Johnson & Johnson reported results which beat on earnings but missed on revenue. Sales grew by 10.4% to $24.8 billion, boosted by $1.8 billion in Covid vaccine sales.
This was also J&J's full-year results. For perspective, they had sales of $93.7 billion for the year, up 13.6% versus 2020. $52 billion of that came from pharmaceuticals which grew 14%; $27 billion came from medical devices which was up 18%; and $14.6 billion (16% of sales) came from the consumer division which only grew 4%. That explains why they are spinning the consumer division out.
The share is up 150% in the last 10 years. In the last five years, it is up 33%. This one is slow and steady, and we are happy to hold them in Vestact-recommended portfolios. These returns exclude the very solid dividend yield that averages around 3% per annum. J&J has famously increased its dividend for 60 consecutive years.
More importantly however, J&J is flat for the year to date while the Nasdaq is down 14%. In our tech-heavy Vestact portfolios, J&J is a very stable anchor whilst dishing out much-needed cash every quarter.
