JNJ or Disney? New Purchase

jnj vs dis

JNJ or Disney? New Purchase

Hey everyone

I’m back with another purchase in our rrsp account. My watch list was/is incredibly small this month, so I didn’t bother with that post.

It came down to 2 stocks. Johnson & Johnson or Disney?

Disney is an existing position of mine, but one I’d like to pump up. JNJ is the stock I have always wanted to add to our dividend Portfolio.

JNJ has the dividend history, pays next month and sports a higher yield. Disney rocks a small dividend, pays twice a year, but DISNEY PLUS….

They both have wide moats and deserve to be in our portfolio at these prices. Health care is currently 8.5% of the portfolio (a nice increase this month) while consumer cyclical is lagging at 6.6%.

The Poll

I decided to see what twitter had to say and created a poll to see what people thought. Buy one this week JNJ or Disney?

Within half a hour jnj was up to 79% of the votes. I went to bed and in the morning was surprised to see things got a lot closer, almost neck and neck.

Then I read some comments.

  • Some jokes about Disney not contributing to the opiate problem
  • Going for the lower sector
  • JNJ for the dividend history and yield, but also noted if he was younger – maybe Disney.
  • Winning either way with both stocks.
  • Then Monsieur Dividende called me right out. I posted the  talcum article on Oct 18th about jnj and said if I had the stock I’d be selling asap.

Results

It was great to see and loved the comments. Overall the poll had 105 votes and jnj won by 58% of the vote.

As you can see the poll was actually pretty close, but it does make you question who voted.

Was the majority older and therefore seeking yield instead of growth? Some people in general won’t buy the 1.34% yield. Did they pick jnj just because they are a dividend king? Maybe they don’t invest in the cyclical sector as a whole, I know a few that don’t.

But the comments were the kicker. It reminded me of all the lawsuits out there….. There are a lot. I know jnj will be fine and they will be paying penny’s on the dollar for each of them. (If they do actually pay anything)

8 billion dollar man boobs though? Clearly jnj seems to be a target these days.

I dunno if I wanna jump on the jnj wagon yet, I think it will be going sideways for quite some time. Of course I may be wrong, and I’ll kick myself if I am but……




DISNEY PLUS!

(Insert dumb Joke) The force is strong with this one…..

I’ve said it before and I’ll say it again. Disney is the best consumer cyclical stock out there! Well I said it in March 2018 when I bought 20 of their shares for 102 bucks each. I also picked Disney as my top pick for 2019 in roadmap2retire’s top investment picks of 2019.

Here we are a day before their earnings and 6 days before Disney Plus is out.

Disney is absolute beast. I really don’t need to talk much about them. If you have kids, you most likely have been to one of their parks.

Watching a movie these days? Probably a Disney flick. I was raised on Aladdin and Lion King. The only time they weren’t on was when they were rewinding….. haha. My kids will surely be watching the frozen series and Moana. Your Welcome. Such a great track. =)

Disney stores are in the malls, and will have their own area in target’s.

And now Disney plus… Ok lets be honest. This is going to cost Disney a lot and could also lower the stock price in the short term, but the future looks incredible.

They already own so much content, they just need to post it. Will they vault movies, like they currently do? I dunno. Star wars fans automatically have to get this with that new star wars show. Does netflix, apple, hbo etc have that kind of fan base?

Streaming Battle Royale

I’m not going to get into the battle of the streams though. Most likely we will now have Disney plus as well as netflix. I love netflix’s documentary’s and wonder how disney will do in that regard, but the wife is pretty set on keeping netflix. For 14 bucks a month, I rather keep her happy then debate cutting it.

Happy wife, happy life? I dunno – Happy Spouse Happy House =)

What I’m really looking forward too though is espn. Give me my sports! With my hd antennae I get cbc but that means I need to settle with only watching the leafs at home on sat night. I want to turn the tv on in the morning and get my half hour of highlights. I’m really hoping this can become a part of my mornings again. Espn has always been more US focused, so I’m not expecting to watch much games at the start at least.

The Purchase

I put my money where my mouth is, you wont see Rob has no positions in the stocks mentioned at the bottom of this article. On Tuesday I added 11 more shares of disney at just over 132 per share. This adds a whopping $19.36 to our forward yearly dividend income. Disney currently represents 3.8% of our portfolio, but I plan on getting that up to 5%

Conclusion

These are exciting times to be a Disney shareholder. Disney plus should help boost every aspect of Disney. When their content is right there in your face it should increase demand for their parks, cruises, merchandise and even more content. I think out of all my stocks, Disney has the most potential for growth in the coming years.

Let’s see what their earnings report tomorrow says and hopefully it comes with another dividend raise. (I think it will be small though)

Cheers.

– Long Dis

For the record I think jnj is a great company at a good price at the moment. I will eventually have a position in jnj.

What are your thoughts? Have you signed up for Disney plus yet?




 

18 Responses

  1. I like both JNJ and Disney and have small positions on both of them.I prefer JNJ now

  2. Boo I voted JNJ how could you buy Disney!!! Lol just kicking JNJ these days is a target for everyone but I believe that will go away at some point. Disney has a lot going for it and I have it on my watchlist, maybe one day I will pull the trigger and buy some shares at some point.
    Matthew Freeman recently posted…October 2019 Divided IncomeMy Profile

    • Rob says:

      haha Matt

      Disney would be a solid addition to that portfolio of yours. =)

      Your right, Im sure the target will come off jnj. Right before I decide to buy them….. womp womp

      cheers man

  3. Good to see this purchase Rob. As many have said, can’t go wrong with either JNJ or DIS. I own JNJ, but have been looking closely at DIS last few weeks. I have been evaluating how it will fit into my portfolio considering the cyclical nature and where we are in the cycle.

    Cheers
    R2R

    • Rob says:

      hey Road

      So true, eventually Ill have both. It will be interesting to see how Disney does. Even in bad times, maybe that’s when ill take the kids to disney. Hopefully its a little less crowded….

      cheers man

  4. I voted for DIS..hah

    I own both (in a fund), but don’t typically buy individual US stocks. Like everyone else said, cant go wrong with either long term.

    Curious to see how the whole streaming thing plays out. 10 years ago everyone hated cable, and wanted to move to streaming……now everyone is complaining they need like 12 different streaming services and wish everything was bundled into one (like cable)….

    I currently have the following streaming:
    Crave/HBO
    Netflix
    Amazon Prime
    DAZN
    OneSoccer

    It’s getting insane..haha
    Moneymaaster.com recently posted…This Canadian REIT is doing all the right things.My Profile

    • Rob says:

      Nice pick

      dam 5 different services? I guess prime is free anyways though.. I have thought of getting sportsnet for the leafs but that’s 17 a month. Arg! Like you mentioned almost at the cost of cable for all them anyways.

      I guess all these services are good for the film industry at least.
      cheers Jordan!

  5. German says:

    Great buy! We’re yet to visit Disney park. I figure when my youngest will be 5, we’ll go down south. I will budget 10K for this trip. Take my money, Disney!
    German recently posted…Portfolio Value Update – October 2019My Profile

    • Rob says:

      hey German

      Yeah our son is going with the grandparents this winter. (hes 6) I dont want to go until our daughter is about 5 too. That seems like a great age. Yeah disney will take your money, thats for sure. Nothings cheap at the castle.

      cheers man!

  6. Hi Rob, Long time holder of JNJ here. I think I owned Disney way back in the day, but sold when I went to an all fund portfolio, then never went back. I’m not very familiar with DIS stock anymore. Tom
    Tom @ Dividends Diversify recently posted…Duke Energy Dividend Stock AnalysisMy Profile

  7. I think either choice would have been great although I would have purchased Disney – only because JNJ is already in my portfolio! Congrats on the purchase.
    Dividend Portfolio recently posted…Should I Buy A Premium Website?My Profile

    • Rob says:

      haha hey port

      Seems everyone owns jnj. I’ll eventually own it too.

      Disney should be solid.

      Hakuna Matatta – It means no worries

      cheers

  8. PCI –

    Just can’t argue either way. Disney will be here, always. Love what they have under their umbrella.

    -Lanny

  9. DivHut says:

    No DIS+ for me. Streaming has become ridiculous in recent years. No more value as you inevitably subscribe to more than one service. Forget cord cutting… cord connecting might make more sense these days. Wake up people… Decades ago you owned a TV. You bought it… you owned it and all programming was free. Today, you pay for multiple services to view content. You pay for home internet, car internet, cel phone internet. It’s an industry that took one service and made you pay for it three times. Either way both DIS and JNJ I like though DIS looks a tad high these days.
    DivHut recently posted…Dividend Income Update October 2019My Profile

    • Rob says:

      so true. When we moved to our neighborhood we heard about how the neighbourhood had it’s own channel for the survey only and didnt pay a cent for cable.

      That is long gone now, times have changed for sure. dis plus and netflix are 20 bucks a month. Not that much for sooo much content, still alot cheaper than cable.

      Got to get more disney to cover the dis plus expense with dividends!

      cheers hut

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