Time to Rethink the Role of Emerging Market Bonds
Emerging markets have done well this year and should continue to attract investor interest around the globe. Latin America is leading year-to-date.
The Barbell strategy involves putting half your portfolio in defensive, low-beta sectors or assets and the other half in aggressive, high-beta sectors or assets.
Investors are stepping back into emerging market bonds after removing billions of dollars from emerging markets in 2016.
Negative bond yields in Japan and low Fed funds rates in the United States and the Eurozone were one reason emerging market bonds performed well in 2016.
Of the 23 broker firms in Reuters’ survey, JNJ received “buy” ratings from ~39% of the firms, while ~61% of the firms rated the company a “hold.”
JNJ announced a quarterly cash dividend of $0.80 per share on January 3. This payment represents a dividend growth rate of 6.7% over the previous year.
JNJ posted better-than-expected 2Q16 earnings results on July 20, 2016. But its share price has fallen ~2% since October 18, 2016.
On January 3, DePuy Synthes, a subsidiary of Johnson & Johnson (JNJ), entered into an asset purchase and development agreement with Interventional Spine.
Johnson & Johnson (JNJ) has faced many litigations over the years, the most serious of which being its faulty hip replacement system lawsuits.
In 3Q16, Johnson & Johnson (JNJ) reported sales of $17.8 billion, representing a YoY (year-over-year) growth of ~4.2%.
On January 9, JNJ’s Medical Device division announced its Orthopedic Episode of Care Approach, a data-driven program that will accelerate value-based care.
In a survey based on the recommendations of 17 brokerage companies, BDX was given “buy” ratings by ~65% of analysts. About 29% issued “hold” recommendations, and ~6% issued “sell” recommendations on the stock.
On December 29, 2016, BDX stock was trading 28.3% above its 52-week low of $129.50 on February 9, 2016, and 5% below its 52-week high of $181.70 on September 22, 2016.
Becton, Dickinson and Company (BDX), expects its 2017 sales to be hit due to the divestiture of its Respiratory Solutions business, which was completed in October 2016.
BDX expects to generate operating cash flows of more than $11 billion for the five-year period from 2016 to 2019.
The BD Medical business generated revenues of ~$8.7 billion in fiscal 2016, which ended September 30, 2016.
Becton, Dickinson and Company (BDX) generates ~$1 billion from its Infection Prevention business.
BDX’s R&D investments totaled ~$828 million in fiscal 2016, which represents an annual growth of ~31%.
BDX’s Lifesciences business generated revenues of ~$3.8 billion in fiscal 2016, ended September 30, 2016.
Becton, Dickinson and Company (BDX) recently launched BD Barricor and BD Ultra Touch Push Button under its Pre-Analytical Systems division.