Planning for your retirement can be as easy as finding a top rated company that’s been around for a long time, has increased and paid out a dividend forever and you can pick it up on the cheap right now.
Dividend growth investors for a more secure retirement are a special breed. We see value when there may not be as much value as we would like. We see an opportunity to increase our income right now when a dividend aristocrat like Johnson & Johnson (NYSE:JNJ) is already correcting by 10% or more.
The focus is income for retirement, and my approach is to avoid timing the market and by taking advantage of what I consider fair pricing for a super juggernaut stock like JNJ.
Well, to my naive approach I see a stock that is not going out of business, is part of everyone’s lives around the world, has a name brand that is recognized by just about everyone, and has paid and increased its dividend for more than 25 consecutive years (52 years to be exact), through good and bad times and has even beaten wall street estimates this quarter.
Yes the company had guided lower back in April, so the results seems to have disappointed some analysts. That being said, it was less than a month ago that even Jim Cramer suggested that JNJ could unlock 50% more growth within the company itself by perhaps breaking the company up into three separate entities. That may or may not happen, but I believe that even if the company stays the way it is, dividend growth investors can now take advantage of an accidental high yield of 3.07% due to the drop in the share price from its 52-week highs.