Tuesday, February 28, 2012
Johnson & Johnson: $JNJ Cash Flow Update
Current Price: ~ $65/share
Projected Yield: ~ 3.54%
Johnson & Johnson ranks as the world's largest and most diverse health-care company. The company comprises three divisions: pharmaceutical, medical devices and diagnostics, and consumer. While the pharmaceutical division currently represents close to 36% of total sales, we expect patent losses and the Synthes acquisition to reduce this proportion to approximately 27% during the next 10 years, with the device segment picking up the majority of the share.