Johnson & Johnson Just Got FDA Clearance for Its Surgical Robot, Hiked Its Dividend for the 64th Time, and Is Targeting $100 Billion in Revenue. But Here's What Investors Should Be Most Excited About
Things are going well for the pharmaceutical giant.
Overview
Johnson & Johnson (NYSE: JNJ) is having a great year. The healthcare giant's shares are up 28% compared to the S&P 500's 8% gain. Several factors are driving this strong performance from the drugmaker. First, despite government drug price negotiations that are leading to lower sales for some of its products, not to mention biosimilar competition for Stelara, an immunology medicine, the company's revenue is moving in the right direction. In the second quarter, Johnson & Johnson's net sales climbed by 6.6% year over year to $25.3 billion. The company is still projecting that it will generate a little over $100 billion in sales this year, marking only the second time in history that a biopharmaceutical company achieves this milestone.
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Second, Johnson & Johnson recently received clearance for the Ottava, a robotic-assisted surgery (RAS) system, for a range of general-surgery procedures. The company's entry into this market could be a big deal. The RAS industry is arguably underpenetrated and could become a growth driver for Johnson & Johnson down the line. Third, the healthcare leader continues to raise its dividend, having done so for 64 consecutive years. That makes it a Dividend King, a status that requires a corporation to have raised its payouts for at least 50 consecutive years. All of these are already great reasons to consider the stock, but one ongoing development may overshadow them all. Here's what investors should be most excited about right now.
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Originally published at www.fool.com.