If You Invested $10,000 in Johnson & Johnson Stock in 2004, This Is How Much You Would Have Today
Johnson & Johnson (NYSE: JNJ) is a big name in healthcare. People all over the world are familiar with the brand of Johnson & Johnson. And investors have grown to love its dividend, which the company has been increasing for 61 consecutive years. Twenty years ago, this was already a top healthcare company. Would investing $10,000 in Johnson & Johnson back in 2004 prove to be a good move for investors? And does the stock look like a good buy for the next 20 years?
On Jan. 2, 2004, Johnson & Johnson stock was trading at around $52. A $10,000 investment at the time would have netted you about 192 shares of the healthcare company. Johnson & Johnson's stock has increased steadily over the past two decades and on Monday it closed at a price of $157.85. That original investment would now be worth $30,307. Although it has effectively tripled in value, the stock has risen at a compound annual growth rate (CAGR) of 5.7%.
The returns look a bit less impressive now. But there's also the dividend, which is a key reason many investors decide to buy shares of Johnson & Johnson in the first place. If you include the dividend, then the 20-year investment would be worth more than $53,300. Those recurring payouts add up and would have accounted for much of the gains investors would have earned over the past two decades. While it may be tempting to discount the dividend, it helps to highlight its overall importance for long-term investors.
Source Fool.com
