Stock price when the opinion was issued
After spinoff, now just pharma and medical technologies/devices. One of 2 AAA-rated US companies (the other is MSFT). Pristine balance sheet forever. Divvy increases for 62 consecutive years, all from free cashflow. Crazy-cheap valuation of 14-15x PE, partly due to ongoing talc litigation. Yield is 3.34%.
Recent press release was like none other. Company stated talc litigation based on fake science; if the other side won't settle, JNJ will litigate each and every case separately. He suspects this is a ploy to force a settlement. Expects it to be over by year's end.
A very well-managed company with a very solid footing. Valuation is reasonable and certainly belongs in a portfolio. It is more of a stabilizer rather than a driver of volatility. In the last couple of days, there has been some concern when guidance came in the little bit lower. He wouldn’t be surprised to see them make some acquisitions in 2017. 2.9% dividend yield.