|Recommended Broker 🇺🇸||
|🌐 Official website:||www.etoro.com *|
How to buy
If you live in the United States, a great way to invest in Johnson & Johnson shares is, without any doubt, this popular broker.
eToro, one of the main brokers around the world, is registered and licensed, among others, by the United Kingdom's Financial Conduct Authority (FCA).
We recommend eToro because you can create an account for free with this broker, and its fees for trading online are very low. Besides, eToro is available in our language, accepts users from the United States, it is really easy to manage, and its friendly interface is ideal for those who are starting to trade with cryptocurrencies and stocks.
How to sign up, step by step
The first thing you need to do is click here and fill in the fields on the right: enter your name, email, and set a password.
Then check your email inbox: you should have received an email from eToro, click on the button and your account will be verified.
Once on eToro, you just have to click on “Deposit funds”, in the page menu.
There, you can choose how much money you want to add to your account (the minimum is $ 200) and the payment method:
As you can see in the image, the first deposit can be made by credit card, PayPal, or bank transfer.
How to make your first trade
When eToro has confirmed the receipt of your credit, you just have to search for “Johnson & Johnson” in the search bar, click on “Invest” and choose the amount in dollars you want to invest.
Should I invest in Johnson & Johnson?
Johnson & Johnson is one of the largest and oldest American companies. It was founded in 1885 by Edward Johnson along with brothers James and Robert Johnson, taking their surnames as the company name. Since then, the company has grown to the point that Fortune magazine ranks it among the 100 largest companies in the United States.
Initially, the creators' idea was to manufacture and market a line of ready-to-use surgical-grade bandages. But as time went by, Johnson & Johnson added more products to its catalog, although always related to the health area.
This is how it went from bandages to produce a wide variety of items that can be framed in pharmaceuticals, medical devices and consumer goods. All this is marketed around the world with its more than 250 subsidiaries that are located in 60 countries and distribute to the rest.
Of the product categories mentioned above, pharmaceuticals are the ones that generate the most revenue for Johnson & Johnson, representing 50% of the total. This is followed by medical equipment with 33% and consumer products with the remaining 17%, which are marketed under the Johnson's brand.
In addition to the above, another important aspect of this company is that more than 50% of its revenues come only from the United States. Some 23% comes from Europe, 18% from Asia and Africa and 7% from the Americas, excluding the United States. This gives us an idea of how important the American market is for the company.
Johnson & Johnson for investors
If there is a perfect stock it would be Johnson & Johnson for several reasons. The first is that it is one of the most solid and consistent companies out there today. Also, as we mentioned, it is among the largest in the United States.
Another important point is that its share price, although historically not very volatile (which is appreciated), grows year by year. So much so that, if we compare the growth of Johnson & Johnson's share since its foundation with the growth of the SP500, which is taken as a gauge of the American economy, Johnson & Johnson is the winner with a great advantage.
Finally, this company has almost 50 years paying uninterrupted dividends to its investors and this is something that few companies have achieved. To this we must add that they are growing dividends that the last 20 years have increased on average 10% per year. This makes it a must-have stock for any investor.
How to deposit funds on eToro
Within the payment methods accepted on eToro you will find: bank transfer, PayPal, credit card, Neteller, and Skrill. There is not much to say here: making a deposit with eToro is really simple. Just go to “Deposit funds”, type the amount and choose your payment method.
Consider that for security policies, you need to be the holder of the credit card or the account.
The minimum amount you can deposit is $ 200 and there is a limit of how much you can deposit if you are not verified, so if you want to trade with higher amounts, contact Support previously to verify your account.
The platform allows deposits in any currency, but you will have to pay a fee for the conversion to USD. That is why we suggest, if it is in your hands, depositing in USD directly.
As we have referred among the positive aspects of eToro, the best thing about this online broker is its extraordinary simplicity: anyone can invest without having to read endless guides.
If you have used before any of the most common social networks, such as Instagram or Pinterest, you can perfectly manage this platform.
We will talk about the sign-up process and the different sections of eToro that you should know.
First, you will have to enter all the information that eToro asks for: first and last name, address…
During the sign-up process, you will also find some questions about your previous experience as an investor.
But don't worry: it is not an exam. It is only a way of finding out how much knowledge you have and what type of assets they can recommend. For example, if it is your first experience in the investment world, they will not recommend that you invest in futures.
You will see a bar that says “incomplete profile” until you complete all the requested information.
Let's get to know the different sections of the site.
In the “Set Price Alerts” tab you can set alarms on the price of certain assets. You just have to click on the three points at the end of the line and you will be able to program a price alarm. It is a very useful tool for when you are after a security which price is decreasing, but perhaps you think that it has not finished falling yet.
The section “News Feed” allows users to interact and share their experiences and knowledge.
In “Discover” you will find: “Instruments”, “People” and “CopyPortfolios”. And we already talked about the different financial instruments on eToro:
- Forex trading
- Index funds
The concept “social trading” comes to life in the section “People”: that is where you can duplicate the movements of the users you find most inspiring. You'll be able to see all their profiles and historical performances.
Through the search engine, you can find the users that you find more interesting: by risk level, types of financial assets, average earnings… You just have to type the amount you want to invest and eToro itself will replicate the movements made by the investor you selected, in proportion. “In proportion” means that if you put $ 1000 and the investor puts 10% of their capital in Amazon, eToro will invest $ 100 of your money in that asset.
Also, here you will see CopyPortfolios classified into: Top Trader, Market, and Partner.
Remember that in some cases, it might be preferable to copy from CopyPortfolios than to individuals, since you avoid putting all your eggs in one basket, or in other words, risk is more diversified. The different portfolios are easily identifiable: one about gaming, another about large drone companies, another about pharmacy … Do you suspect that a certain sector will prosper in the future? Then you will surely find a CopyPortfolio about it.
How does a demo account work?
For those who still don't have much experience in investing, a demo account can be useful. Just make sure the virtual mode is set in the top left corner of the page and you can start trading with fictional funds.
A virtual portfolio can help you to practice and gain experience before starting to operate with real money. When you create your demo account, you will begin with a virtual amount of $ 100.000, to operate with a variety of financial instruments available on the platform (not just with Johnson & Johnson).
Don't worry, since if you lose all your virtual balance, you can contact support so they can add back the $ 100k to your portfolio and you can make a second attempt.
But keep in mind that investing is mainly about being cold-minded, and using a demo account can have the opposite effect. It is completely different to risk your own money than to operate with virtual funds which loss does not suppose any drama. Besides, using fake money can prevent you from learning to control your emotions, something you should be able to do when trading.
As you may suppose, if you are interested in investing in the long or medium-term, there is no point in using the virtual mode and having to wait for years. But it can be ideal if you want to practice short and medium-term trading.
* Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Disclaimer: 67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.