Johnson & Johnson (JNJ)

With this one the trend is definitely your friend. Great company. Extremely well diversified. Innovation continues to be one of the keystones. A player that is able to consolidate the industry. Good from a long-term perspective. If you own, you might consider trimming some at this time.

(Top Pick July 31’12, Up 26.40%)

Great company. Pharmaceutical companies have suffered because they got dependent on blockbuster drugs and that phase of their lifecycle has disappeared. This company is a pharmaceutical company, a medical device company and a consumers’ product company which gives it a diversity of products so that when things are not going well in one area, they can compensate for it. It should continue to do well. If you have a 10 year time horizon, you certainly should hold it.

If you are bullish on the US, it is a fine stock to own. There’s nothing particularly attractive about it. He generally does not buy large caps because they are so well scrutinized and analyzed that they are never really cheap. 3.9% dividend yield and they have a good track record of raising their dividends.

Pharma. Sterling track record of growing cash flow over time. 8% compound growth rate in dividend over 10 years. 50% cash flow growth. Pharma and consumer businesses are strong. A little bit more expensive compared to past but worth it.

(Market Call Minute) Too expensive. 6 months ago he would have bought it because they were having problems with management and recalls.

Just came out with earnings recently and the markets seem to like them. This is like a long bond, a bond proxy. Wonderful company. AAA rating. Beautiful balance sheet. Raising dividends. His issue is the valuation compared to other opportunities he is finding. At 15.5X this year’s earnings it is not expensive for one of the preeminent consumer staple healthcare companies in the world. If it came off 10%-15%, it would be one he would buy in a heartbeat.

The opportunity here is if they get their act together. Have had a lot of problems including recalls on a variety of products. Sort of lost their lustre in terms of the quality of the company. If they get this back, it can move up in terms of multiple points. Perfectly positioned for a demographic move. Very strong balance sheet. Steady grower but the management has been of some concern but this is an opportunity.

(Market call minute.) Stock has started to do well as they’ve proven the validity of their pipeline.

Pharmaceuticals have been about the best performing part of the market year to date. Industry was under owned after 13 years of weak performance. This company has a diversified asset base of consumer products, pharmaceuticals and devices. Have 50 years of dividend increases. Balance sheet is rated AAA, stronger than a treasury bond. Yield of 3.11%.

Trading at a relatively high valuation but a nice dividend. Great stock. Pharma and consumer. She would be willing to buy it now. 3.2% dividend.

(Top Pick Jan 2/12, Up 67.43%)

Don’t go all out or all on or you will miss some of the moves. If you missed this one, look for another one.

Just hit a new high today. Good company. Longer-term you are going to get a pretty persistent dividend. Decent growth rate of probably around 6%-7%. Wait for a pullback to around $70. Pretty low beta stock.

She sees catalysts in each of their divisions to get them going again. Suffered through a lot of patent expiration in Pharma and feels these are largely behind them. Also, sees some of the positive effects of new product launches contributing to earnings now. Consumer division will still be a drag for the next couple of quarters but the problems are being addressed. Acquisition they made earlier this year on medical devices expanded their emerging-market exposure. Again increasing their dividend, like they have for the last 50 years.