With 9.56% of my dividend stock portfolio in Johnson & Johnson (JNJ) stock, I have a huge decision to make with the Kenvue (KVUE) splitoff. Today's video covers my thought process and my (surprising) decision.
#dividend #stock #investing

Timestamps:
0:00 Introduction
0:47 SEGMENT 1: WHAT'S HAPPENING WITH JOHNSON & JOHNSON (JNJ) AND KENVUE (KVUE)
0:53 Splitoff
1:12 Current shareholders have an opportunity to swap (all or part) of their JNJ shares for KVUE shares.
1:25 To my understanding, those who participate, may receive a boost in JNJ share value (for 7% discount on KVUE shares).
1:40 Expected to be tax free
1:41 Expected to close August 18 at midnight NY time
1:55 This splitoff is different than what most JNJ investors expected.
2:43 SEGMENT 2: JNJ AND KVUE DIVIDEND STOCK ANALYSIS (How do the metrics compare?)
3:06 KVUE is 15.4% off its 52week high, that said IPOs can have volatility.
3:26 Forward PE Comparison: JNJ is trading at a cheaper level on a forward PE level. JNJ is at 15.72 vs. KVUE at 18.38.
4:07 I prefer JNJ based on valuation comparison.
4:48 Dividend Comparison: JNJ's starting yield is 2.8%, but KVUE is 3.4%. That said, JNJ has a much lower payout ratio (and presumably quicker dividend growth).j
5:55 Market Capitalization: JNJ is much larger than KVUE. I like this in a winnertakesall society.
6:08 The max I would personally feel comfortable investing in KVUE would be about 10% of my JNJ holdings (based on historical percentages).
7:00 Important: I'm just sharing my personal journey. I'm not providing investment advice. Everyone's situation is different.
7:43 SEGMENT 3: MY JNJ AND KVUE COMPARISON MATRIX (10 POINTS OF COMPARISON)
8:09 Comparison 1: Valuation (I prefer JNJ)
8:47 Comparison 2: Dividend Yield (I prefer JNJ, because I believe that yieldoncost will quickly surpass KVUE, based on dividend growth.)
9:31 I personally believe JNJ will offer superior yieldoncost 5 years out.
10:20 Comparison 3: Market Capitalization (I prefer JNJ due to our winnertakesall society.)
11:58 Comparison 4: Portfolio Simplicity (I prefer JNJ to keep my number of positions at 37.)
12:14 Comparison 5: Legal Risk (I prefer KVUE. This is a big deal. This would be my largest reason to go with KVUE.)
14:14 Comparison 6: Portfolio Risk (KVUE wins, as diversification lessens risk.)
14:50 Comparison 7: Pride of Ownership (JNJ wins, I have longterm conviction behind JNJ.)
15:51 Comparison 8: Portfolio Diversification (JNJ wins, as I have a ton of CPG exposure elsewhere.)
16:57 Comparison 9: 7% Discount (KVUE wins)
17:06 Comparison 10: Tax Consequence (They both win!)
17:17 SEGMENT 4: I decided to keep it all in JNJ.
18:13 I believe JNJ is one of the best dividend stocks of all time.
18:44 DISCLOSURE AND DISCLAIMER

DISCLOSURE: I am long Johnson & Johnson (JNJ), Starbucks (SBUX), and SCHD. I own these stocks in my personal dividend stock portfolio.

DISCLAIMER: All information and data on my YouTube Channel, blog, email newsletters, white papers, Excel files, and other materials is solely for informational purposes. I make no representations as to the accuracy, completeness, suitability or validity of any information. I will not be liable for any errors, omissions, losses, injuries or damages arising from its display or use. All information is provided AS IS with no warranties, and confers no rights. I will not be responsible for the accuracy of material that is linked on this site.

Because the information herein is based on my personal opinion and experience, it should not be considered professional financial investment advice or tax advice. The ideas and strategies that I provide should never be used without first assessing your own personal/financial situation, or without consulting a financial and/or tax professional. My thoughts and opinions may also change from time to time as I acquire more knowledge. These are, as discussed above, solely my thoughts and opinions. I reserve the right to delete any comments for any reason (abusive in nature, contain profanity, etc.). Your continued reading/use of my YouTube Channel, blog, email newsletters, whitepapers, Excel files, and other materials constitutes your agreement with and acceptance of this disclaimer.

COPYRIGHT: All PPC Ian videos, Excel files, guides, and other content are (c) Copyright IJL Productions LLC. PPC Ian is a registered trademark (tm) of IJL Productions LLC.