JNJ Split: Keep Both or Get Rid of One J?

After 59 years of dividend increases, Johnson & Johnson (JNJ) was up for a change! Management decided to split the company. You probably have already heard the news but today we'll see if you should keep the pharma, or the consumer, or both? What does it really mean for you as an investor?

In the comments, what's your take on it?

0:00 About the News
3:05 JNJ Business Model & Growth Vectors
07:24 What's Going to Happen Next

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[jimmbboe]

My thoughts exactly! I will wait to see how the companies will do first.

[brianwightman]

I have held JNJ since September 2000 in my RRSP account. As I age, it is not necessarily a bad thing to have more stable slower growing elements in the portfolio. I'll wait and see how it looks at the spin off.

[pierredentremont]

Did not have J&J but did have GE. Dumped GE a couple days of their news and I will take a step back and wait to see what happens to both before stepping back in. Been bit before and not doing that again!,

[jeromelebel]

Hey Mike thanks for doing this. I own JnJ and for now I plan to keep both companies. I will probably reconsider the consumer side eventually, Atd.b and MRU are already doing great for me in this sector. Will probably keep the healthcare company for a while

[originalthefriday]

Hi just wondering you say you don't hold any cash in your portfolio . Do you think utilitys wil out perform bond etfs etc and if you don't have cash on hand how do you take advantage of down turns in the market to buy at a discount do you sell some of your utilitys to buy discounted stocks

[geoffhadrill]

If you look at Consumer more closely it’s last 4 years have shown good growth after an event(s) caused a severe drop in revenue. This requires a closer before deciding to keep or sell. Baby Powder business was spun off as a subsidiary last week to separate the company from the brand’s lawsuits and immediately declared bankruptcy. A good business decision but morally wrong. Like any investment the split companies require a closer look.

[TheW]

Isn't JNJ spinning the consumer portion off because of the baby powder lawsuit? The small company takes the fall, not the company as a whole?

[danielegianetti]

Bonjour Monsieur! What are your thoughts on Laurentian Bank of Canada? I already have BMO, National Bank and Scotiabank, but was thinking to extend my exposure with another Québécois bank upfront the earnings ...was reading some articles about an overall good quarter for Quebec economy that should positive reflect into Laurentian Bank of Canada results. Any thoughts?