Core Viewpoint - Focusing on stocks with a history of consistent dividend growth can provide better long-term investment value compared to just current yield [1] Group 1: Walmart - Walmart has shown modest gains of 3% this year, indicating its stability as a retail stock during market turmoil [3] - The company announced a 13% increase in its dividend, extending its growth streak to 52 consecutive years [4] - Despite a lower yield of 1% compared to the S&P 500 average of 1.5%, Walmart's potential for continued dividend increases and growth in advertising and online business makes it a compelling long-term investment [4][5] Group 2: Johnson & Johnson - Johnson & Johnson has a longer dividend growth streak of 63 years and has seen a 9% increase in stock value this year [6] - The recent 4.8% dividend increase results in a yield of 3.3%, making it an attractive option for dividend investors [7] - Revenue has grown from $78.7 billion in 2021 to $88.8 billion in the past year, although there are uncertainties regarding talc powder lawsuits that could impact future dividends [7][8] Group 3: Procter & Gamble - Procter & Gamble boasts the longest dividend growth streak at 69 years, with a recent 5% increase announced in April [9] - The company reported sales of $84 billion in its most recent fiscal year, up from $82 billion the previous year, demonstrating stability through its 65 core brands [10] - Procter & Gamble's global presence and operational flexibility help mitigate risks related to tariffs, making it a safe long-term dividend stock [10][11]

Market Overview - The Dow Jones Industrial Average, S&P 500, and Nasdaq Composite have all experienced double-digit percentage declines, with the Nasdaq entering a bear market with a loss exceeding 20% from its all-time high [2][3] - The recent declines have been characterized by their rapid velocity, with significant single-session point and percentage declines recorded [3] Tariff Policy Impact - President Trump's tariff policy has been a pivotal factor in the recent market downturn, with a 10% global tariff and higher reciprocal tariffs on countries with negative trade balances with the U.S. announced [4][5] - The potential for tariffs to increase domestic goods prices and reignite inflation is a concern, as input tariffs could make U.S. products less competitive [6] - Tariffs may also harm trade relations and create uncertainty in the market, as the president frequently changes which products or countries are affected [7] Investment Opportunities - The current market volatility presents an opportunity for long-term investors to acquire stocks at discounted prices [8] - Johnson & Johnson offers a 3.31% yield and has increased its annual payout for 63 consecutive years, indicating a strong dividend history [9] - Johnson & Johnson holds a AAA credit rating, reflecting confidence in its ability to service and repay debts [10][11] - The company's operating model is expected to remain stable despite tariff concerns, as demand for healthcare products is consistent [12] - Johnson & Johnson's focus on novel-drug development and its historically inexpensive stock valuation (14 times forward-year earnings) make it an attractive investment [14][15] Sirius XM Holdings - Sirius XM Holdings provides a 5.36% yield and operates as a legal monopoly in satellite radio, giving it pricing power over competitors [16][17] - The company generates 76% of its net sales from self-pay subscriptions, making it less vulnerable to economic downturns compared to traditional radio operators reliant on advertising [19] - Sirius XM's stock is valued at 6.6 times forward-year earnings, representing a 55% discount to its average forward P/E multiple from 2019 to 2024 [20]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☑ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the quarterly period ended March 30, 2025 or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the transition period from to Commission file number 1-3215 Johnson & Johnson (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) ...

Core Insights - Johnson & Johnson announced promising 12-month data from the Phase 2b SunRISe-1 study, highlighting the effectiveness of TAR-200 monotherapy in treating high-risk non-muscle invasive bladder cancer (HR-NMIBC) [1][2] - The study results will be presented at the AUA 2025 Annual Meeting, emphasizing the potential of TAR-200 to provide a new treatment option for patients unresponsive to standard BCG therapy [1][3] Company Overview - TAR-200 is an investigational intravesical gemcitabine releasing system, with over 10,000 placements in clinical programs to date [5] - The FDA granted Breakthrough Therapy Designation to TAR-200 for treating adult patients with BCG-unresponsive HR-NMIBC, indicating its potential significance in the oncology pipeline [5] Industry Context - Bladder cancer is one of the top ten most common cancers globally, affecting nearly one million people annually, with limited treatment options available for those who do not respond to initial BCG therapy [2][7] - High-risk non-muscle invasive bladder cancer (HR-NMIBC) represents a significant challenge in urology, with radical cystectomy often being the standard treatment for patients who fail BCG therapy [7][8]

Group 1: U.S. Credit Ratings - In 2011, S&P Global Ratings downgraded the U.S. long-term credit outlook from AAA to AA+ due to budgetary issues, with Fitch downgrading U.S. credit again in 2023 and Moody's considering a similar move [1] - The 2024 fiscal deficit has ballooned to over $1.8 trillion, exacerbating debt and fiscal issues [1] Group 2: Microsoft - Microsoft holds AAA and Aaa ratings from S&P and Moody's, respectively, and has seen its stock fall about 12% this year, outperforming peers in the "Magnificent Seven" [4][6] - The company has a diverse business model across various tech sectors, including cloud, video games, and AI, and was an early investor in OpenAI [4] - Microsoft has a strong balance sheet with over $71.5 billion in cash and equivalents, approximately $40 billion in long-term debt, and equity exceeding $302 billion, resulting in a low debt-to-equity ratio [6] Group 3: Johnson & Johnson - Johnson & Johnson is the only other U.S. company with top credit ratings and recently announced an acquisition of Intra-Cellular Therapies for $14.6 billion, which may impact its credit rating due to increased debt [7] - The stock has performed well, up nearly 9% this year, and the company raised its full-year revenue outlook to $91.4 billion from $89.4 billion [8] - Johnson & Johnson's CFO indicated that the guidance includes a $400 million impact from tariffs, which could affect stock performance if trade tensions with China persist [9] - At the end of 2024, Johnson & Johnson had over $24 billion in cash, about $30.6 billion in long-term debt, and over $71 billion in total equity, maintaining a strong balance sheet despite the recent acquisition [10]

Earlier this week, J&J (JNJ) began the first-quarter earnings season for the drug and biotech sector with better-than-expected results.J&J’s first-quarter adjusted earnings were $2.77 per share, which rose 2.2% from the year-ago period. Sales of $21.89 billion rose 2.4% from the year-ago quarter. Innovative Medicines segment sales rose 2.3% year over year to $13.87 billion. MedTech segment sales came in at $8.02 billion, up 2.5% from the year-ago period.The company raised its sales expectations for 2025 by ...

Core Viewpoint - Johnson & Johnson continues to enhance shareholder value through consistent dividend increases, maintaining a strong financial profile and significant investments in growth opportunities [1][9]. Financial Health - Johnson & Johnson has a AAA bond rating, one of only two companies globally with such a top credit rating, surpassing the U.S. government [3]. - The company ended Q1 with $13.5 billion in net debt, consisting of $38.8 billion in cash against $52.3 billion in debt, which is manageable given its $370 billion market cap [4]. - In the most recent quarter, Johnson & Johnson generated $3.4 billion in free cash flow, sufficient to cover its $3 billion dividend payout [4]. Dividend Performance - The recent 4.8% increase in dividend payments extends the company's dividend growth streak to 63 years, placing it among the elite Dividend Kings [1]. - The forward dividend yield now stands at 3.4%, significantly higher than the S&P 500's yield of 1.4%, making it an attractive option for passive income [2]. Cash Flow and Investments - Last year, the company produced $20 billion in free cash flow, a $1.6 billion increase from 2023, despite higher litigation costs and taxes [5]. - Johnson & Johnson invested $17 billion in R&D last year, representing 19.4% of its sales, and continued this trend with $3.2 billion in Q1 [6]. - The company has made substantial acquisitions, spending over $14 billion in Q1 to acquire Intra-Cellular Therapies, alongside previous acquisitions totaling over $15 billion [7]. Growth Outlook - Johnson & Johnson aims for a 5% to 7% compound annual growth rate in operational sales from 2025 to 2030, which is expected to drive earnings and free cash flow higher [8]. - The company's robust free cash flow and strong balance sheet support its ability to invest in R&D and acquisitions, positioning it for continued growth [9].

Core Insights - Johnson & Johnson (JNJ) reported stronger-than-expected first-quarter 2025 results, continuing its streak of earnings beats and exceeding revenue estimates [1][3] - The company raised its revenue guidance for fiscal 2025 amid tariff challenges and increased its quarterly dividends [1][5][6] Financial Performance - JNJ's first-quarter earnings per share were $2.77, beating the Zacks Consensus Estimate of $2.57 and improving 2.2% year-over-year [3] - Revenues grew 2.4% year-over-year to $21.89 billion, surpassing the Zacks Consensus Estimate of $21.62 billion [3] - Innovative Medicines sales advanced 4.2%, while MedTech device sales jumped 4.1% [4] - Sales of Darzalex, a blood cancer treatment, increased 20% to $3.2 billion, and Xarelto sales rose 33% year-over-year to $690 million [4] - However, Stelara sales declined 34% to $1.6 billion due to new biosimilars entering the market, and Invega Sustenna sales dropped 15% to $903 million [4] Revenue Guidance - JNJ raised its revenue guidance for fiscal 2025 to $91.0-$91.8 billion from $89.2-$90.0 billion, indicating year-over-year growth of 2.6%-3.6% [5] - The new guidance reflects the addition of Caplyta following the $14.6 billion acquisition of Intra-Cellular Therapies [5] - The company maintained its adjusted earnings per share guidance in the range of $10.50-$10.70, accounting for tariff costs and dilution from the acquisition [5] Dividend Increase - JNJ increased its quarterly dividend to $1.30 per share from $1.24 per share, marking the 63rd consecutive year of dividend increases [6] - The annual dividend now totals $5.20 per share compared to the previous $4.96 per share [6] ETFs with JNJ Exposure - Investors are encouraged to consider ETFs with significant allocations to JNJ, including iShares U.S. Pharmaceuticals ETF (IHE), iShares U.S. Healthcare ETF (IYH), First Trust Nasdaq Pharmaceuticals ETF (FTXH), Health Care Select Sector SPDR Fund (XLV), and VanEck Vectors Pharmaceutical ETF (PPH) [2] - JNJ accounts for 24.5% of IHE, 7.2% of IYH, 7.8% of FTXH, 7.4% of XLV, and 6.7% of PPH [7][9][12][13][15]

Core Viewpoint - Johnson & Johnson reported solid earnings, beating expectations on both revenue and earnings, while providing better-than-expected guidance despite acknowledging a potential $400 million tariff impact on its medical device business [2][3][4]. Financial Performance - The company’s stock price is currently at $153.66, with a P/E ratio of 23.11 and a dividend yield of 3.23% [2]. - J&J's MedTech division experienced a year-over-year revenue growth of approximately 4.3%, with forecasts of 5-7% annual growth [10]. Tariff Impact - The anticipated $400 million tariff hit is viewed as a worst-case scenario, with ongoing uncertainty regarding future policy moves [4][5]. - The company is currently affected by existing steel and aluminum tariffs, with potential additional tariffs on pharmaceuticals once exemptions are lifted [5]. Innovative Medicine Developments - Johnson & Johnson is a leader in precision medicine, with significant advancements in gene therapy, particularly with the approval of the Rybrevant drug for non-small-cell lung cancer [7][8]. - The long-term potential of Rybrevant is highlighted, especially following the expiration of the patent for its blockbuster drug Stelara [8]. Litigation Issues - Ongoing litigation related to talc products remains a concern, with the company’s attempt to separate these liabilities into a different entity being rejected by courts [11]. - This litigation adds uncertainty for shareholders, as the company must continue to navigate these legal challenges [11]. Dividend and Investment Outlook - Johnson & Johnson has a strong dividend history, recently increasing its dividend for the 63rd consecutive year, with an annual dividend of $4.96 [12][13]. - Analysts suggest a potential upside of approximately 11% for the stock, making it a candidate for a buy-and-hold strategy, especially given its current trading position within its 52-week range [14].

About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, ...