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Donald Yacktman on Medical Device Stocks: JNJ, BCR, BDX, MDT, SYK

December 03, 2010 | About:
guruek

guruek

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In a recent TWST interview, Donald Yacktman volunteered to talk about a third sector – Medical Device Area -- that he has a good percentage of money in, besides drink companies and media companies:
Mr. Donald Yacktman: A lot of the businesses we’ve talked about generate high returns on assets, and they have the ability to con­tinue to have a high return on assets for a long period of time. A third group, which we haven’t spent much time on, is the medical device area, which we’ve put a fair bit of money into in the last year or two. The common theme there from Johnson & Johnson (JNJ) to CR Bard (BCR), to Becton, Dickinson (BDX) to Medtronic (MDT) to Stryker (SYK) is you have high-quality businesses that have suffered significant multiple compression and now sell at attractive prices.


GuruFocus tracks the stock portfolio of Yacktman. Here is the list of the Health Care related stock in his portfolio:

Symbol Number of Shares Value ($1000) Percentage (%) Quarterly Change % of Company
BCR 1911668 155667 3.3 44.34 2.04
SYK 1856408 92913 1.97 1133.49 0.47
BDX 1047343 77608 1.65 7.93 0.45
UNH 2059652 72314 1.53 1.52 0.18
COV 1632375 65605 1.39 431.24 0.33
PDCO 500000 14325 0.3 New 0.4
MDT 400000 13432 0.29 New 0.04
WLP 150500 8524 0.18 0 0.04
PFE 16666397 286162 6.07 3.28 0.21
JNJ 3185014 197343 4.19 10.87 0.12
PBH 446600 4417 0.09 0 0.89


Here is an overview and holding history of the stocks:

Johnson & Johnson (JNJ)

Johnson & Johnson has a market cap of $172.43 billion; its shares were traded at around $62.6 with a P/E ratio of 13.1 and P/S ratio of 2.8. The dividend yield of Johnson & Johnson stocks is 3.5%. Johnson & Johnson had an annual average earning growth of 10.8% over the past 10 years. GuruFocus rated Johnson & Johnson the business predictability rank of 4.5-star.



C.R. Bard Inc. (BCR)

C.R. Bard Inc. has a market cap of $8.08 billion; its shares were traded at around $86.33 with a P/E ratio of 15.9 and P/S ratio of 3.1. The dividend yield of C.r. Bard Inc. stocks is 0.8%. C.r. Bard Inc. had an annual average earning growth of 15.7% over the past 10 years. GuruFocus rated C.r. Bard Inc. the business predictability rank of 5-star.



Becton Dickinson and Company (BDX)

Becton Dickinson And Company has a market cap of $18.75 billion; its shares were traded at around $80.76 with a P/E ratio of 16 and P/S ratio of 2.6. The dividend yield of Becton Dickinson And Company stocks is 1.9%. Becton Dickinson And Company had an annual average earning growth of 13.9% over the past 10 years. GuruFocus rated Becton Dickinson And Company the business predictability rank of 4.5-star.



Medtronic Inc. (MDT)

Medtronic Inc. has a market cap of $36.56 billion; its shares were traded at around $33.86 with a P/E ratio of 10.3 and P/S ratio of 2.3. The dividend yield of Medtronic Inc. stocks is 2.7%. Medtronic Inc. had an annual average earning growth of 11.4% over the past 10 years. GuruFocus rated Medtronic Inc. the business predictability rank of 4.5-star.



Stryker Corp. (SYK)

Stryker Corp. has a market cap of $20.4 billion; its shares were traded at around $51.4 with a P/E ratio of 16 and P/S ratio of 3.1. The dividend yield of Stryker Corp. stocks is 1.2%. Stryker Corp. had an annual average earning growth of 15.9% over the past 10 years. GuruFocus rated Stryker Corp. the business predictability rank of 4-star.



Check out Yacktman’s complete stock portfolio by clicking on Donald Yacktman

Read the complete TWST interview here.


Rating: 3.8/5 (6 votes)

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