Investors looking to jump into a blue chip stock like Johnson & Johnson (JNJ) and lock in an attractive yield-on-cost are currently faced with an opportunity not seen since last September.
Shares of JNJ have fallen on the heels of this morning’s disappointing earnings release, and at noon today are trading at just $60.90 (-2.12%), where they carry a 3.55% dividend yield.
That’s a level the stock hasn’t closed below since September 14 of last year, which means there hasn’t been an opportunity to buy the stock with a yield this high in more than four months.
Since that low point in September, JNJ has traded as high as $64.92, where buyers locked in a yield-on-cost of just 3.33%. Meanwhile, the S&P 500 has risen by 15%.