Johnson & Johnson is one the largest companies globally – with a current market capitalization of over $400 billion. Although the conglomerate is listed on the New York Stock Exchange (NYSE), you can easily buy Johnson & Johnson shares online in the UK.
In fact, if using an online broker that supports debit/credit cards or e-wallets, the investment process should take you no more than 10-15 minutes.
In this guide, we show you how to buy Johnson & Johnson shares in the UK in the easiest and most cost-effective way. We’ll also discuss the best UK brokers to do this with, alongside some background information on where Johnson & Johnson shares are headed in both the short and long term.
In order to buy Johnson & Johnson shares in the UK, you will first need to locate a broker that gives you access to the American stock markets.
Bearing in mind that the NYSE is the largest stock exchange globally, most UK share dealing platforms will offer Johnson & Johnson (JNJ) shares. As such, you need to consider how much your chosen broker charges in fees, what the minimum investment is, and what payment methods it supports.
To help point you in the right direction, below you will find a small selection of UK stock brokers that allow you to buy Johnson & Johnson stock online.
eToro ticks most boxes in the UK share dealing scene. First and foremost, eToro covers almost 1,800 shares from 17 different marketplaces. Not only does this include hundreds of UK stocks, but heaps of American shares too. This means that you can buy Johnson & Johnson shares at the click of a button.
Other stock markets at eToro include Germany, the Netherlands, Canada, Spain, and more, When it comes to trading fees, eToro does not charge any commissions at all. This is unusual, especially when it comes to buying foreign-listed stocks like Johnson & Johnson. In addition to a commission-free offering, eToro waivers the usual 0.5% stamp duty tax that you pay on FTSE 100 shares.
What we also like about eToro is that you can buy fractional shares. This is crucial when it comes to American stocks like Johnson & Johnson, which is currently priced at over $152. However, at eToro, you only need to meet a $50 minimum investment when you buy shares, which is great for those of you on a budget.
Outside of stocks and shares, eToro also offers ETFs and a full selection of CFD trading instruments. An additional feature that is popular with UK investors is that of the eToro Copy Trading tool. This is a passive investment feature that allows you to mirror an eToro trader.
Each and every buy or sell order that they place will subsequently be reflected in your own portfolio – proportionate to the amount you invest. When it comes to payments, eToro supports debit/credit cards, e-wallets, and bank transfers. The minimum deposit amount is $200 – or about £160.
If you haven’t come across eToro before and are concerned about its reputation – you shouldn’t be. This popular broker is now home to over 13 million investors. Most importantly, the platform is not only authorized and regulated by the FCA, but your funds are covered by the FSCS protection scheme.
67% of retail investor accounts lose money when trading CFDs with this provider.
Fineco Bank is another low-cost broker that you might want to consider when you buy Johnson & Johnson shares online. While the platform isn’t commission-free like eToro, you will pay a share dealing charge of just £2.95.
You will pay this fee when you buy Johnson & Johnson shares, and again when you cash out. Other than that, you will benefit from free deposits and withdrawals, and there is no inactivity fee.
In terms of tradable markets, it must be noted that Fineco offers a lot more than eToro. In fact, you’ll have access to thousands of shares across dozens of UK and international exchanges. In the UK alone this covers over 1,200 stocks from both the London Stock Exchange and the AIM.
In addition to stocks and shares, Fineco Bank also offers ETFs, investment funds, and passive portfolios. Much like eToro, you can also trade CFD instruments – which gives you access to leverage and short-selling. The minimum deposit at Fineco Bank is an affordable £100.
You won’t, however, be able to do this with a debit/credit card or e-wallet. Instead, Fineco only supports bank account transfers. Finally, Fineco is a safe option if you decide to use the platform to buy Johnson & Johnson shares. This is because it is licensed by the FCA and partnered with the FSCS.
Your money is at risk.
So now that we have discussed the best UK stock brokers to buy Johnson & Johnson shares online, we are now going to cover some core research materials on the company.
This will give you the required background information to determine whether or not a Johnson & Johnson (JNJ) investment is right for your financial goals.
What is Johnson & Johnson plc?
Founded way back in 1886, Johnson & Johnson is a large American conglomerate. This means that it is behind a fully diversified portfolio of products and services. This covers everything from consumer goods, skin and beauty products, to medical devices, pharmaceutical treatments and drugs.
Some of the best selling Johnson & Johnson products include:
As we cover in more detail shortly, this healthcare and biotech company is also working on a promising vaccine for COVID-19. As the vaccine in question requires just one dose, this is potentially more favorable than the two doses required by Pfizer and Moderna.
Johnson & Johnson is one of the oldest stocks globally – with the firm undergoing its public listing in 1944. Listed on the NYSE, Johnson & Johnson now carries a market capitalization of well over $400 billion. This makes it one of the largest companies in the US – and one of the biggest constituents of the SP 500.
Shareholders have been rewarded handsomely since Johnson & Johnson went public – with the firm not only going through the first and second world war but heaps of recessions. Back in 1980, you would have paid just $2 for a single Johnson & Johnson shares (adjusted for stock splits).
Fast forward to late 2020 and the same stock will cost you over $152. In terms of its recent performance, Johnson & Johnson started 2020 at $145 per share. It then hit lows of $111 in March 2020 – translating into a 3-month decline of over 23%.
The shares have, however, recovered all of their COVID-19 related losses. In fact, had you bought shares in this vaccine candidate at the start of the year, you would now be looking at modest gains of 4.8%. There could be room for further growth in the coming months if the firm’s coronavirus vaccine is approved by the FDA.
Johnson & Johnson EPS and P/E Ratio
At the time of writing in late 2020, Johnson & Johnson shares carry a P/E ratio of 24. In terms of its EPS, this stood at $2.20 in its most recent earnings report of Q3 2020.
Although capital growth is always going to be somewhat modest with a blue-chip giant like Johnson & Johnson, it is important to remember that the firm is a Dividend Aristocrat.
|Oct 22, 2020||Nov 23, 2020||Nov 24, 2020||Dec 08, 2020||1.01||U.S. Currency|
|Jul 20, 2020||Aug 24, 2020||Aug 25, 2020||Sep 08, 2020||1.01||U.S. Currency|
|Apr 14, 2020||May 22, 2020||May 26, 2020||Jun 09, 2020||1.01||U.S. Currency|
|Jan 02, 2020||Feb 24, 2020||Feb 25, 2020||Mar 10, 2020||0.95||U.S. Currency|
For those unaware, this means that the stock has increased the size of its dividend every quarter for at least 25 years. In the case of Johnson & Johnson, the conglomerate has been doing this for almost six decades straight.
As such, if you are seeking the best dividend stocks to add to your portfolio, Johnson & Johnson is well worth considering.
So now that you have a firm understand of what Johnson & Johnson does – as well as how its shares have performed over time, we are now going to explore what the future potentially holds for its stocks.
As a Johnson & Johnson investor, you will benefit from relatively predictable incoming cashflows. With that said, the most exciting thing surrounding the company at present at that its COVID-19 vaccine is now in phase 3 of its clinic trials.
This is a huge trial that includes 45,000 participants. On the one hand, the US has already approved two coronavirus vaccines – those backed by Pfizer and Moderna. However, both of these vaccines require the end-user to take two individual doses on separate occasions.
In addition to this – at least in the case of the Pfizer vaccine, this needs to be stored in freezing conditions. This makes it difficult in terms of storage and situation – especially in the third-world. This isn’t a requirement with the Johnson & Johnson vaccine, meaning that if approved, demand may supersede that of Pfizer and Moderna.
During times of economic uncertainties, investors will flock to defensive stocks. These are stocks that are historically unaffected by wider economic conditions – not least because they sell products and services that are always in demand.
Bearing in mind that almost 50% of Johnson & Johnson revenues come in the form of pharmaceutical products, it is fair to suggest that it should continue to do well even when the wider stock markets are moving in the wrong direction.
As we covered earlier, Johnson & Johnson has been a public stock since 1944. This means it has gone through plenty of global recessions – and always bounced back.
As we mentioned just a moment ago, Johnson & Johnson is a leading member of the Dividend Aristocrat club. When you consider that the firm has increased the size of its quarterly dividend for over 58 years, this is super impressive.
In fact, while many stocks either cut or suspended their dividend payment as per the pandemic – Johnson & Johnson continued with its increase as done for almost six decades.
Super Strong Balance Sheet
Many companies were unable to ride out the coronavirus storm due to a weak balance sheet. This is in stark contrast to Johnson & Johnson, which has an extremely strong financial outlook. Not only does this include a huge balance of cash and cash equivalents, but a relatively low short-term debt obligation.
This ensures that no matter what is happening with the wider economy, Johnson & Johnson has a balance sheet that is prepared for all potentialities.
Step 3: Open an Account and Deposit Funds
Once you have performed sufficient research on Johnson & Johnson shares, the next stage of the process is to open an account with your chosen brokerage firm.
As we discussed earlier, eToro ticks all of the right boxes when it comes to investing through the provider. Not only can buy Johnson & Johnson shares commission-free and at a minimum of just $50, but the broker is authorized and regulated by the FCA.
As such, the walkthrough below will show you how to buy Johnson & Johnson shares with eToro.
First, you will need to visit the eToro website and open an account:
This will require the following information from you:
- Full name
- Home address
- Date of birth
- National insurance number
- Email address
- UK mobile number
- Username and password
To comply with the FCA, eToro also needs to verify your identity. You can do this instantly by uploading a copy of your passport or driver’s license. Plus, you’ll need a document that verifies your home address – such as a recently-issued bank account statement or utility bill.
Note: You can upload these documents later if you are depositing less than $2,250 (£1,800-ish).
After that, you will be asked to make a deposit. Although the minimum Johnson & Johnson investment is just $50, the minimum deposit is $200.
You can choose from the following payment methods:
- Debit/credit cards
- Bank transfer (2-3 working days)
As long as you deposited funds with a debit/credit card or e-wallet, the transaction will be processed instantly. In turn, you can now proceed to buy Johnson & Johnson shares.
All you need to do is enter ‘Johnson & Johnson’ into the search box and click on the result that loads up. Then, click on the ‘Trade’ button.
You will now need to fill out an investment order box. If you want to keep things simple, just enter the amount of Johnson & Johnson shares that you wish to buy (in US dollars).
To complete your commission-free Johnson & Johnson share purchase, click on the ‘Open Trade’ button.
Although there is a buzz surrounding Johnson & Johnson at present because of its phase 3 coronavirus vaccine trials, the general consensus on this stock is that it is a strong buy anyway. The strong and stable blue-chip stock is just under 5% up for the year – and it continues to retain its 58-year status as a Dividend Aristocrat.
In summary, as one of the largest companies globally, you can buy Johnson & Johnson online in the UK with ease. The most important thing is that you do this with a trusted broker that offers low fees and manageable account minimums.
If opting to buy Johnson & Johnson shares through our top-rated FCA broker eToro, the investment process can be completed in minutes. You won’t pay a single penny in commission and you can instantly buy the shares with a debit/credit card or e-wallet.
Simply click the link below to get started!
67% of retail investor accounts lose money when trading CFDs with this provider.
Interested in investing in other pharmaceutical companies that are involved in developing a coronavirus vaccine? Check out the list below.