Logical Progress Advancing a Little Bit Every Day

25May/130

Added JNJ to aristocrats portfolio

This week I had some cash left over from the exercise of my MO options, so I rolled some of it into JNJ right before the ex-div of May 23. It was trading at a 52-week high, so I was a bit reluctant at first, but decided that I can average down on the pullback. JNJ is a powerhouse of a company, having paid dividends for 50 years. It currently has a 68% payout ratio, so it's getting to be on the high side, but I trust that earnings will continue to increase and this ratio will remain stagnant. They also just raised their dividend from $0.61/share to $0.66/share, not too shabby. The yield now is approximately 2.9%

Of course, with the recent pullback, I'm already down a few bucks per share, but lucky for me I only bought in 10 shares this time. If it continues to pull back to about $80/share I will add more. My strategy in this portfolio is to add more closer to the ex-date, but since I got JNJ near its 52-week high, it would be prudent to buy down my cost as the price pulls back significantly, and not wait for the next ex-div.

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