Several subscribers recently asked about my favorite dividend growth stock of all time. Specifically, they asked which dividend stock I would own if I had to place all of my investment funds in one single stock. My answer is quite simple, as Johnson & Johnson (ticker: JNJ) is already the largest position in my portfolio. Today’s video explains why Johnson & Johnson is my favorite stock for dividends, complete with fundamental analysis.

Let’s Start With My Investing Video

Here’s What My Johnson & Johnson (JNJ) Video Is All About

I get started in today’s video with some high level thoughts. Why do I like this stock so much? It really comes down to some high level concepts including:

• Predictability (and stability)
• Incredible margins (gross profit and operating)
• Population trends (aging US population and growing global population)
• More!

Next, I dive into my Johnson & Johnson fundamental stock analysis. Specifically, I discuss concepts including:

• Revenue Growth: I really enjoy how revenue is up 25% comparing 2007 and 2017. I also like how revenue tends to grow predictably on a year-by-year basis. It’s like clockwork.
• US versus international mix: International sales are getting close to representing 50% of this company’s mix.
• Incredible Margins: Gross profit is at 66.8% (wow!) and operating profit is at 23% (both from the 2017 annual report).
• Dividend growth: I invest for passive income and cash flow! I need to buy companies to put cash in my pocket, cash that can be used to pay the bills. Johnson & Johnson is a great example, as they’ve raised their dividend over 105% comparing 2017 to 2007.

Despite stellar fundamentals, it looks like Johnson & Johnson has a PE ratio in the 22.94 range right now (possibly a bit lower). (NOTE: I pulled this number when I originally filmed this video, back in April, 2018.) I backed into this number, since EPS is thrown off by one-time tax items. Certainly, the stock is priced for perfection, but it always seems to be! While I’m not buying this stock in 2018 (other than reinvesting dividends), I do want to buy more. I’m waiting for a correction, although I never expect a big one with this stock.

Of course, there are a few risk factors with JNJ. I close out discussing those potential risks:

• Patent expiration and the need to always innovate in their pharmaceutical division.
• Overall pricing of their products (the US health care system is broken).

Related Dividend Investing Videos On My YouTube Channel

Want to learn more about my dividend growth investing strategies? Here are a few popular videos on how I would hypnotically invest different sums of money.

• If I were starting out all over again, here’s How I Would Invest $1,000 In Dividend Stocks.
• Here’s How I Would Start Investing With $5,000 In 2018 and Beyond.
• A very popular video on my YouTube Channel, here’s How To Invest $10,000 In Dividend Stocks.
• Hypothetically speaking, Here is How I Would Start Over Again With $25,000 In Dividend Stocks.
• Want to Invest $50,000 In Dividend Stocks? I think you’ll enjoy this video!

Disclosure: I am long Johnson & Johnson (JNJ). I own this stock in my portfolio.

Disclaimer: I’m not a licensed investment advisor, and today’s video (and blog post) are just for entertainment and fun. This video (and blog post) are NOT investment advice. Also, I’m not a tax advisor and today’s video (and blog post) NOT tax advice. Please talk to your licensed investment advisor before making any financial decisions.

All content on my YouTube channel is (c) Copyright IJL Productions LLC.

Hey, everyone! Long time since I’ve posted here on my blog. Why? I’ve been completely focused on my job, family, and (in my limited spare time) Youtube Channel. These days, My PPC Ian YouTube Channel about dividend growth investing is flourishing (up to 16,000 subscribers and growing!). As such, I wanted to take this opportunity to start sharing some of my favorite YouTube videos here on my blog. I hope you enjoy this one about one of my favorite dividend stocks of all time, Coca-Cola (KO)! Do you enjoy investing in dividend stocks? Please share your thoughts in the comments section below!

My Coca-Cola (KO) Dividend Investing Video

Investing Video Description and Notes

Of course I own this particular stock in my dividend stock portfolio! It’s a big, blue chip company, one that has an incredible brand (perhaps the best ever). Margins are great (incredible), and it has staying power. And, of course, they raise the dividend consistently. In fact, since first purchasing shares in 2011, I’m already yielding 5% on cost. I’m talking about The Coca-Cola Company (ticker: KO).

After my recent Video Analyzing The Kraft-Heinz Company (KHC) and how I’m staying away due to the large controlling interest owned by Warren Buffet and 3G Capital, I started receiving a flurry of questions about Coca-Cola, perhaps Warren Buffet’s most famous investment. So, I just had to film this video to share why KO is quite different than KHC in my opinion.

Today’s video is a long one with a thorough fundamental stock analysis of KO and also high level insights about my personal investment philosophy. It’s a good one. Some highlights:

• Learn about yield on cost and why I’m personally yielding 5% on my Coca-Cola stock.
• Learn about Coca-Cola’s rich history of increasing dividends on an annual basis (quite aggressively).
• See why it’s a good thing (in my opinion) that Warren Buffet is involved here.
• Learn about their portfolio of brands.
• See how I analyze their Annual (10-K) and Quarterly (10-Q) reports.
• Learn about Coca-Cola’s underperformance (vs. the S&P 500 and their peer group) in recent years, and how I don’t really mind (it’s all about long-term perspective when investing for passive income).
• See how refranchising and tax reform are really affecting Coca-Cola’s numbers.
• Revenue, gross profit, operating income, income before taxes, and income after taxes are all down!
• That being said, could Coca-Cola be turning the corner? Watch today’s video to find out!
• Learn about Coca-Cola’s organic sales growth and their long-term refranchising vision (through my eyes, at least).
• See why it’s really difficult to pinpoint a PE ratio here.
• Am I a buyer of KO here? Watch the video to learn more!

While this is a long video, I invite you to hang in there. The investing insights, in my opinion, are worth the time investment.

Want to connect on Instagram? Please reach out!

Related PPC Ian Dividend Investing Videos

Discussed in today’s video, please find below links to other related dividend investing videos.

• Here’s My Analysis of The Kraft-Heinz Company
• Here are my thoughts on Socially Conscious Investing
• Here’s My Weight Loss Story, and why I no longer drink soda (although I do drink beverages like Smart Water).
• Here’s a link to my recent AT&T Stock Analysis

Disclosure: I am long Coca-Cola (KO). I own this stock in my portfolio.

Disclaimer: I’m not a licensed investment advisor, and today’s video (and related blog post) are just for entertainment and fun. This video and blog post are NOT investment advice. Also, I’m not a tax advisor and today’s video and blog post are NOT tax advice. Please talk to your licensed investment advisor before making any financial decisions.

All content on my YouTube channel and blog is (c) Copyright IJL Productions LLC.