Johnson & Johnson

What do I need to know about JNJ stock?

Johnson & Johnson was founded in 1886 by Robert Wood Johnson and his brothers, James Wood Johnson and Edward Mead Johnson. It was the former's son, of the same name, who created the company's credo in 1943, shortly before its initial public offering. That credo outlined the firm's responsibility to its patients, employees, communities and stockholders. It also spoke of the need for continued innovation and, in March 2023, Johnson & Johnson was named on Fortune's inaugural list of most innovative companies.

Having started out producing surgical dressings, the firm's offering now extends to a wide range of healthcare expertise, technology, medicine and equipment. Johnson & Johnson trades on the New York Stock Exchange (NYSE) under the ticker symbol JNJ and its annual results for 2022 reported revenue of $94.9 billion. That represented an increase of 1.3% on 2021 – a significantly slower rate of growth when compared to the previous 12 months (13.6%).

2023 saw the launch of Kenvue, a new brand that covers the consumer healthcare section of the business, focusing on prescription drugs and medical devices. Kenvue can also be traded on the NYSE, under the ticker symbol KVUE.

Johnson & Johnson stock history

In the 1990s, the general trend for Johnson & Johnson's share price was one of steady improvement as the company expanded internationally – including in eastern Europe following the break-up of the Soviet Union. The company also acquired several household brands, such as Neutrogena and Aveeno, during this period.

The long-term view of the JNJ stock price since the turn of the century tells a similar story. In 2017 it made its largest ever acquisition, $30bn for biotech firm Actelion. As was the case across most businesses, the JNJ share price experienced heightened volatility in the immediate aftermath of the coronavirus outbreak. The company was impacted in different ways as the need for medical devices fell significantly but demand for consumer medicine like Tylenol surged as the public sought to stock up. Overall, JNJ's stock price rose from the start of the pandemic and has exceeded $150 throughout the 2020s.

What affects Johnson & Johnson's share price?

The performance of JNJ stock can be impacted by a variety of factors. Monitoring these and understanding their bearing on the share price can help you shape the decisions you make and the positions you take up.

• Global events: The coronavirus outbreak stands as a prominent recent example. As a major player in the pharmaceutical space, Johnson & Johnson had a central role in the efforts to combat the pandemic. Chief Financial Officer Joe Wolk has spoken about how Covid-19 impacted the company.
• Company news: Acquisitions – such as those of Pfizer in 2006 and Actelion in 2017 – are significant developments that can prompt movement in the JNJ share price.
• Financial results: The company releases reports on a quarterly and annual basis that detail revenue, net earnings, dividends and a host of other metrics. Analysing these reports can offer traders and investors an indication as to how the business is performing – as well as its future objectives.
• Litigation: Product recalls and lawsuits – such as the one settled for $2.2bn in November 2013 – have the potential to have a detrimental impact on the performance of JNJ shares.

How to trade or invest in JNJ shares

Investing in JNJ stock

With Tradu you can invest directly, taking ownership of the asset with a view to making a profit if the Johnson & Johnson share price rises in value. Investing is typically seen as a long-term strategy as you seek to make a return over a period of months or even years. It will require you to put up the full amount of capital to enter your position and it's possible that you could earn dividends on your JNJ stock.

Trading JNJ stock via derivatives

If you don't wish to invest directly, you can speculate on the future movements of the Johnson & Johnson share price without taking ownership of the stock itself. This is done via derivative products such as contracts for difference (CFDs). Typically a shorter-term strategy, these allow you to go long or short and mean you can use leverage to increase your exposure.

Find out more on these topics with the guides in our Knowledge Centre:

• CFDs
• Leverage

What are Johnson & Johnson's dividends per share?

According to its annual report, Johnson & Johnson recorded cash dividends of $4.45 per share in 2022. That is up from $4.19 in 2021 and continues the company's run of 60 straight years of increased dividends.

Pros and cons of trading Johnson & Johnson stock

Pros of JNJ stock

• Extensive coverage: As a premier player in its industry, stories regarding Johnson & Johnson receive plenty of attention and can make your fundamental analysis easier to carry out.
• Highly liquid: JNJ shares are traded in high volume on a daily basis, so you should be able to enter and exit positions efficiently.
• Trade your way: Invest directly or use derivatives. Go long or short. Day trade or position trade. The Tradu platform allows you to do it all for JNJ stock.

Cons of JNJ stock

• Volatility: Especially on short-term trades, sudden and significant movements – if not in your favour – can eat into your capital.
• Leverage: Using leverage can work to your advantage but it's important to remember that trading on margin can also amplify your losses.
• Risk of litigation: Due to the nature of its consumer offering, any product defects or recalls can leave Johnson & Johnson open to damaging lawsuits.

How to start trading or investing in JNJ stock with Tradu

1. Open your Tradu account. Once you're logged into the portal, you can toggle between specialised platforms for stocks and other asset classes.
2. Define your strategy. Identify your goals and how you're going to reach them, factoring in your areas of expertise, available capital and appetite for risk.
3. Study the market. Combine fundamental and technical analysis to get a feel for the JNJ share price and how it is performing.
4. Enter your position. Execution is slick and seamless, so you can open and close at the right time at a price you're happy with.