J&J Announces Second Major Spinoff, Plans to Separate Orthopedics Division

Core Insights - Johnson & Johnson (NYSE: JNJ) is undergoing significant restructuring, including a second major spin-off of its orthopedics division, which is expected to be completed within 18 to 24 months [2][4] - The company anticipates revenue growth exceeding 5% in 2024, surpassing analysts' expectations of 4.6%, and projects adjusted earnings to exceed Wall Street's estimate of $11.39 per share by up to 5 cents [3] - Johnson & Johnson has maintained a strong dividend tradition, raising its payouts for 63 consecutive years, with a current quarterly dividend of $1.30 per share and a dividend yield of 2.74% as of October 14 [6] Company Developments - The orthopedics division, which generated approximately $9.2 billion in revenue last year, accounts for about 10% of the company's total sales [4] - The new company formed from the spin-off will be named DePuy Synthes and will be led by industry veteran Namal Nawana [4] - In 2023, Johnson & Johnson initiated a two-year restructuring plan for its orthopedics unit, which includes market exits and product discontinuations, following the spin-off of its $15 billion consumer health business into Kenvue [5]