(JNJ) - Over the past 14 quarters, JNJ beat the Street's earnings estimate on 12 occasions while matching estimates on the remaining two

Johnson & Johnson (JNJ) topped analysts' earnings expectations in 12 out of the past 14 quarters. This year marked the 44th straight in which the company boosted its dividend. JNJ has a current dividend yield of 2.4% and a five-year average dividend yield of 1.8%. The company's return on equity crushes that of the industry average—27% compared to a negative 12%. Full Analysis Johnson & Johnson manufactures and sells various products in the health care field primarily in the United States. The company operates through three segments: consumer, pharmaceutical and medical devices and diagnostics. Over the past 14 quarters, JNJ beat the Street's earnings estimate on 12 occasions while matching estimates on the remaining two. Earnings per share grew 16.2% over the past five years. On Jul 18, JNJ bettered analysts' second-quarter earnings expectations by a penny when it posted profits of $2.9 billion, or 98 cents per share. In the prior-year period, the company reported 93 cents. Furthermore, JNJ announced record revenues for the second quarter of $13.4 billion, a 4.7% jump. Broken down by business segment, pharmaceutical sales grew 3.2% to $5.8 billion; medical devices and diagnostics advanced 6.7% to $5.2 billion; and the consumer division climbed 4.5% to $2.4 billion. Chairman and CEO William C. Weldon stated, “Our second-quarter results demonstrated improving performance which is anticipated to continue throughout the remainder of the year. We have made a number of business building investments and have received several significant regulatory product approvals. These investments and approvals will help us both sustain important leadership positions as well as enter new high growth markets characterized by unmet medical need.” JNJ's history of increasing revenues and expanding gross margins is quite impressive, having done so for the past nine years. Moreover, the company has grown profits for seven years running. The Board of Directors announced a 13.6% increase in its quarterly dividend to 37.5 cents per share from 33 cents in late April. This marked the 44th consecutive year in which the company upped its dividend. Investors requiring a stream of cash flow from their investment in JNJ have enjoyed a five-year average dividend yield of 1.8%. The company is currently yielding 2.4%. JNJ's return on equity dwarfs that of the industry average—-27% compared to a negative 12%. JNJ is a Zacks #2 Rank (Buy) stock. Zacks #2 Rank stocks have generated an average annual return of 21.6% since 1988. Because the Zacks Rank has a market cap bias, Growth & Income investors may find a greater number of large-cap stocks by considering both Zacks #1 Rank (Strong Buy) and Zacks #2 Rank (Buy) stocks in their selection criteria. Note: The Zacks Rank is a very sensitive indicator that can change frequently for an individual stock. This important indicator is updated daily on Zacks.com and is available to Zacks Premium subscribers. As such, it is prudent to check the site for the latest Zacks Rank on the stocks highlighted in this section. Simply click the link for the stock or enter the symbol in the ticker entry box in the upper left hand corner of the web site. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. | Blog Home| VitalStocks Home