September 22, 2021 8:00 AM
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3
 min

Booster dose proved to be effective

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New data show that booster vaccinations with Johnson & Johnson provide enhanced protection after two months, while new single dose data show consistent vaccine efficacy. The Johnson & Johnson Covid-19 booster shot is reportedly 94% effective when given two months after the first dose, while the drug remains well tolerated with comparable side effects. The new data allows the company to ask the FDA to allow re-injections of the roughly 14.8 million Americans who have so far received only the first component of the company's vaccine. Johnson & Johnson predicts COVID-19 vaccine sales in 2021 will be approximately $ 2.5 billion, and approval of a booster dose could lead to higher vaccine revenues in 2022.

TIKR
JNJ

PRICE
$164

TARGET PRICE
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Last quarter, J&J increased its quarterly dividend by 5% to $ 1.01 per share. The indicative annual dividend yield is 2.6%. Successful drug testing can be distinguished from the main growth drivers for J&J shares: firstly, it justifies investment in research, and secondly, it helps to increase sales and business expansion. Johnson & Johnson's sales are expected to grow by $ 10.8 billion to $ 102 billion by 2023, driven by stronger sales of nine drugs alone, including Darzalex, Imbruvica, Erleada and Tremfya. We like Johnson & Johnson's business profile and the current macro environment, which is having a positive impact on the company's operations. We also like the issuer's stable dividend profile.

Johnson & Johnson is one of the world's largest and most diversified health care companies that offers products worldwide from its three major businesses divisions: Pharma, Medical Devices and Diagnostics, and Consumer products. JNJ is one of only four companies with a AAA credit rating, which gives it a tremendous amount of flexibility on its debt instruments and provides the company with unparalleled buying and selling opportunities in all market environments. JNJ consists of over 275 operating companies located in 60 countries. JNJ's top three priorities to shareholders are: (1) its dividend; (2) judicious M&A/L&A across the three divisions; and (3) share repurchases that eliminate dilution. The company intends to maintain its industry-leading dividend payout ratio at the 47% level or higher.

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