JNJ or Disney? New Purchase

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?