The Dividend Daily

Health care superpower Johnson & Johnson (JNJ) said Tuesday that it is planning to cut 6% to 7% of its workforce, in hopes of bolstering profits amid higher generic drug competition.

The New Brunswick, New Jersey-based company said it will lay off 7,000 to 8,000 employees. The cuts are expected to generate annual cost savings of $800 million to $900 million in 2010, and $1.4 billion to $1.7 billion in 2011.

The company currently employs around 117,000 people worldwide. The latest job cuts will result in a $1.1 billion to $1.3 billion charge in the fourth quarter, the company said.

Johnson & Johnson shares fell 11 cents, or -0.2%, in morning trading Tuesday.

The Bottom Line
We began recommending shares of JNJ back on Oct.8, when the stock was trading at $60.71. The company has a dividend yield of 3.29%, based on last night’s closing stock price of $59.49.

Johnson & Johnson (JNJ) is a “recommended” dividend stock, holding a Dividend.com DARS™ Rating of 3.5 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.