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My Dividend Portfolio: Accumulating Johnson & Johnson

I am developing a passive income stream from dividends to generate financial independence. I am proceeding down the path of steadily accumulating a set of high-quality dividend paying stocks. To this end, I am adding Johnson & Johnson (JNJ) to my dividend portfolio.

Johnson & Johnson operates a diversified health care portfolio across consumer, pharmaceutical and medical devices and diagnostics. The strength of Johnson & Johnson's competitive advantage is primarily attributable to the strong brand equity that the company has developed with consumers over many years. Additionally, switching costs in the devices group as well as considerable intellectual property in the pharmaceuticals group also adds to Johnson & Johnson's wide moat.

Johnson & Johnson has a market capitalization of $287B with revenues of $74.4B. In 2013, JNJ generated net income of close to $13.8B. JNJ currently trades at a forward P/E of 16 and offers a dividend yield… Read More …