JNJ - If You Invested $1000 in Johnson & Johnson During the Last Recession This Is How Much You'd Have Today
Johnson & Johnson (NYSE: JNJ) has been a leader in the pharmaceutical industry for over 130 years. With a vast product portfolio and a 2.8% dividend yield, the stock remains popular with income investors despite a history of modest year-over-year gains. The company experienced 6.7% sales growth in 2018, and just 0.6% sales growth in 2019. When the infamous bear market plunge occurred in March, shares of Johnson & Johnson stock plummeted by nearly 24%. The stock's price has stayed near its Jan. 2 closing price of $145.97 since the beginning of May.
Leading economists now concur that the United States officially entered recession territory in February. According to the National Bureau of Economic Research, "The peak marks the end of the expansion that began in June 2009 and the beginning of a recession. The expansion lasted 128 months, the longest in the history of U.S. business cycles dating back to 1854." The last such period of economic decline was during the Great Recession, which commenced in December 2007 and ended in June 2009.
Investing during a recession is not without inherent risk. That said, buying stock of a company with a robust balance sheet priced much lower than usual could produce substantial gains 10, 20, or 30 years in the future. If you're thinking about buying up Johnson & Johnson stock now, you might be wondering what your portfolio would look like if you'd scooped up shares during the previous recession over a decade ago.