How to buy Johnson & Johnson shares
Use this guide to help you decide whether to invest in Johnson & Johnson stock. It goes through the company’s recent performance, some key things to look out for, and where you can go to buy shares.
Compare the best platforms to invest in Johnson & Johnson shares
Use one of the brokers below to buy shares straight away. These have all been reviewed by our team of financial experts to give you peace of mind that these are the best options around. If you don’t want to buy yet, keep reading to learn more.
How to buy Johnson & Johnson shares, a step-by-step guide
The process of buying shares in Johnson & Johnson isn’t massively complicated, so don’t worry even if you’re new to stock investing. These are the steps to follow in order to complete your investment:
- Choose a broker. In order to buy Johnson & Johnson stock, you will need to use an online brokerage platform. There are many different options to choose from, each with their own unique benefits and drawbacks. The comparison table above can help you select the right broker for you, and you can head to our comprehensive broker reviews if you’re still unsure.
- Create an account. Once you’ve selected your broker, simply go to their website and create an account. The steps required for this will vary from platform to platform, but generally you can expect to have to provide your name, email address, phone number, and some form of photo identification.
- Deposit funds. Log into your broker account and select the option to deposit funds. Depending on your broker you’ll have a variety of payment options available; most brokers accept bank transfers and debit card payments, but not all accept e-wallets such as PayPal. Select your preferred payment method and deposit the amount of money you wish to invest in Johnson & Johnson shares.
- Place an order for JNJ stock. Now navigate to the broker’s buying stocks page (a link to this can be found in the menu on the website). Here you’ll be able to search for Johnson & Johnson’s ticker symbol (JNJ) and see the current price at which the stock is trading. If you’re happy with the price, enter the amount of shares you wish to buy and place your order.
- Execute your order. Once you have placed your order, your broker will automatically execute it for you and your Johnson & Johnson shares will be listed in your account. Congratulations, you’ve just bought shares in Johnson & Johnson.
What is Johnson & Johnson? And should I invest?
Johnson & Johnson is a pharmaceutical company that sells medical drugs and consumer health products. It’s the largest healthcare business and one of the most valuable companies in the world.
It develops products in three main areas: pharmaceuticals, medical devices, and consumer healthcare. The pharma division contributes more than half its revenue, which means developing new drug treatments is the cornerstone of the business.
Healthcare stocks are appealing because their products are always in demand. They are more resistant to economic cycles and spend lots on research, where any big breakthrough can be a huge boost to public health – and the company’s bottom line.
How has JNJ performed as an investment in recent years?
Johnson & Johnson’s share price increased consistently for almost the whole of the 2010s. It accelerated as the decade wore on, and grew by nearly 50% between 2015 and the end of 2020.
J&J has been able to keep increasing both its revenue and stock price by developing treatments for lots of different diseases, most notably to fight cancer, over the past few years. This is crucial, to replace lost revenue from the expiration of patent protections on older drugs, when competitors can create alternatives that drive the price down.
Despite its generally good performance, a series of lawsuits have made the stock more volatile. Legal fights over asbestos in talcum powder, its liability for an opioid crisis in the US, and the side effects of a anti-psychotic drug have caused price falls as they raised the possibility J&J might have to pay hundreds of millions in fines.
Is it a good time to buy JNJ shares now?
It’s rarely been a bad time to buy Johnson & Johnson. It has a strong history of continued growth and a size that helps protect it from big market shocks. The most important thing to look for is that it keeps producing new drugs to replace the ones that fall out of patent protection
Along with its own research, J&J regularly buys up innovative companies to expand its service and revenue base. Some notable recent acquisitions are a robotics platform for digital surgery and a biotech group focused on developing treatments for rare diseases.
So while the underlying model looks to be growing stronger, the one big cloud on the horizon is all its legal issues. You need to be aware of these, as they might end up costing J&J serious money. Our market analysis can help you stay on top of the seemingly endless cycle of decision and appeal:
Johnson & Johnson Stock Price Surges 7% On a $450 Million Coronavirus Vaccine Contract
Buying, selling and trading Johnson & Johnson shares for beginners
What to do before buying shares
You should always take the time to research a stock fully before investing your money, especially if you haven’t bought shares before. The more knowledge you have, the better your chances of making a wise investment.
With that in mind, here’s a checklist to run through before investing in Johnson & Johnson shares.
- Research the company. You should always examine the fundamentals of a company before buying its stock. What is Johnson & Johnson? How did the company get its start? How did it grow? Is Johnson & Johnson’s revenue and profit growth picking up? Is the company innovating? The more you know about Johnson & Johnson, the better positioned you’ll be to make smart investment decisions.
- Make sure you understand the basics of stock investing. Before getting involved in the stock market, make sure you have an understanding of how it works. This will ensure that you have more clearly defined goals and have thought through how you will achieve them.
- Decide between share dealing and CFD trading. Choose the type of investment strategy you want to pursue, and make sure you have carried out the necessary fundamental or technical analysis for share dealing and CFD trading respectively.
- Set the size of your budget. The golden rule of investing is never to risk more than you can afford to lose. Not every investment you make will result in a profit, so it is important to set a budget that not only allows good potential for capital growth, but also protects against overly damaging losses.
- Find the right broker. Individual brokers each have their own pros and cons. Some will have low fees but have a user interface you struggle to understand, whereas others may be a bit more expensive but come with a range of features that you want to take advantage of. Our broker reviews can help you find the right platform.
- Examine broader market conditions. No stock exists in a vacuum, and it’s always important to analyse the general trends of the stock market as a whole before investing. If a bear market is setting in and stock prices are falling, it’s best to wait it out and invest your money later when the stock is cheaper. If, however, the market is looking bullish, you’ll want to make your investment quickly to get the maximum benefit from rising stock prices. Our latest news section can help you keep on top of movements in the financial markets.
What is the difference between buying, selling, and trading shares?
If you’re new to stock investing, then it’s important to understand the basics of how to buy, sell, and trade Johnson & Johnson shares. Here’s a quick run-through of what’s involved in each.
Buying Johnson & Johnson shares
This process involves finding a broker and placing an order to buy Johnson & Johnson stock, as outlined in the steps further up this page. Ideally you want to time your investment when the stock’s price is low so that you can profit by selling the shares after they increase in value.
Selling Johnson & Johnson shares
When you sell any Johnson & Johnson shares you have bought, you’ll want to do so at a higher price than the one at which you bought to earn a profit.
When you sell is up to you. You might decide to hold for a long period of time, hoping to benefit from the company growing steadily throughout. Or, if you see that Johnson & Johnson’s stock is already up a lot compared to the price you bought it and you’ve noticed that the stock market is starting to fall, it might make sense to sell and take your profits to invest elsewhere. Equally, if the stock has fallen since you bought it and looks set to fall further, it might be a good idea to cut your losses by selling your shares.
Trading Johnson & Johnson shares
Trading is the same process as buying and selling shares, it’s just done over shorter periods of time with the aim to make small profits on a regular basis. This means that you can make money faster and spend your profits in your day-to-day life – however, on the other side it means you can lose money faster as well. For inexperienced investors, we generally recommend making investments for at least 6 months to a year instead of making trades in quick succession.
You can trade Johnson & Johnson shares through buying and selling shares, or by trading with CFDs. These allow investors to speculate on stock prices and trade with leverage in pursuit of bigger gains. CFDs trading is explained further in the next section, but it is worth noting that beginners should avoid trading with leverage. It comes with large risks and is best left to experienced investors.
Ways to buy Johnson & Johnson shares: share dealing and CFD trading
When it comes to investing in any stock, the two options you have are share dealing and trading. Which one of these methods to opt for largely depends on your investment timeline, with investors thinking long term tending to go for share dealing, and those looking for short term gains pursuing a more aggressive trading strategy.
Here’s a quick summary of the two approaches, and the pros and cons of each.
Share dealing refers to the practice of buying and holding shares in a particular company over the long term. When investing like this, you’re seeking to profit either from dividend payments or an increase in the stock’s price over time.
When investing your money this way, it is important to do thorough fundamental analysis of the company in which you are investing. You want to put your money in a stock you believe will trend upwards over time, even if there is some market volatility along the way, rather than get distracted by shorter term peaks and troughs.
- Can build wealth over time to achieve financial goals
- Don’t need to be very reactive to short-term market movements
- Some stocks will give you an income through regular dividend payments
- Takes a long time to realise any profits
- Your capital is tied up in stocks and cannot be used for other investments
If your aim is to generate profits in the short term, then you might be better off trading shares than holding them in your portfolio. Stock trades like this are executed using CFDs (contracts for difference), which allow investors to trade against the value of a stock without having to take ownership of it. When CFD trading, investors are looking to buy and sell stocks fast to profit from short-term fluctuations in value.
One aspect of CFD trading that many investors find attractive is that they allow you to trade with leverage. This means you can place large trades while only putting up a fraction of the value yourself – for instance, if a platform offered leverage of 1:10, you could put £10 into JNJ shares and be able to trade £100 worth. This can maximise profits if the market moves in your favour, but be careful as it can also lead to heavy losses.
When trading using CFDs, it is key to be skilled at technical analysis and reading stock price charts. As you’re trading stocks quickly and frequently, the fundamental strength of the company in which you’re investing isn’t as important as being able to predict how its stock price will rise and fall minute-by-minute.
- Can generate fast profits if you read the market right
- Some platforms allow you to trade with leverage
- Prevents your capital being tied up so you can take advantage of investment opportunities
- Trading with leverage is risky and can lead to big losses
- Doesn’t necessarily generate growth over the long term
Consider which approach suits you best and craft an investment strategy that works for you. If you need more information, then simply take our course on how to trade stocks.
If neither of these options appeal to you, then you can find a variety of other ways to invest in JNJ stock on this page. If, however, you’re ready to buy Johnson & Johnson shares now, simply select one of the brokers in the table above and get started.
How to choose a broker
With the wide variety of online brokers available these days, it can be hard to figure out which is the best service to go with. Our comparison table and in-depth reviews can help you cut through the noise, but by and large these are the aspects you should be considering when selecting a broker:
- Range of stocks available. The most important thing is that you can actually use the broker to buy the shares you’re looking for. Some brokers offer more stocks than others, and many will allow you to trade other assets, such as cryptocurrency and commodities.
- Fees and commissions. You want to keep as large a chunk of your profits as you can, so it’s important to make sure your broker doesn’t charge high fees that can eat into your profits.
- Regulation. You should only use regulated brokers to place trades and buy shares. Unregulated brokers can be risky and offer little to no protection if the business were to fail while you had funds in your account.
- Payment methods available. You might want to buy Johnson & Johnson shares using a specific payment method, such as PayPal. Not all brokers accept every payment method, but using our comparisons you can search only the brokers that support the option you’re looking for.
- Reputation. One of the strongest indicators of a broker’s reliability is the reputation it has with the customers who have used it. Brokers are online businesses, and as such many user experiences can be found online. You can check these out in addition to our reviews to make sure you choose the right platform.
- Customer service. As you’re going to be investing your money using the platform, you want to check that the broker offers good customer service in case you have a query or something goes wrong.
Latest Johnson & Johnson news
Johnsons & Johnson’s sales jump to £16.35 billion in fiscal Q4
Johnson & Johnson blows past Wall Street estimates in the third quarter
Johnson & Johnson’s profit tanks 35% in Q2 as COVID-19 delays elective surgeries
Johnson & Johnson beats analysts’ estimates for earnings and revenue in the first quarter
Johnson & Johnson suspends plans of buying Takeda Pharmaceutical’s TachoSil
J&J to begin human trials of its experimental Coronavirus drug by September
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- 1. How to buy Johnson & Johnson shares
- 2. Compare the best platforms to invest in Johnson & Johnson shares
- 3. How to buy Johnson & Johnson shares, a step-by-step guide
- 4. What is Johnson & Johnson? And should I invest?
- 5. Buying, selling and trading Johnson & Johnson shares for beginners
- 6. Ways to buy Johnson & Johnson shares: share dealing and CFD trading
- 7. How to choose a broker