Johnson & Johnson (JNJ)

(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.

Dividend is very sustainable. Relative to their yield on their 10 year bonds, dividend should still be higher but may be equal but now with a higher stock price. Has a decent pipeline for drugs. Medical devices side has functioned reasonably well over the last little while.

Hasn`t owned this one for a long time. Has underperformed the group. Patent expirations should be behind them. Their pipeline remains very attractive. Last quarter they posted attractive growth in the pharma area. Increased dividend for the last 50 years.

Would this be a good stock for children/grandchildren in a TFSA savings account? Up about 8% year to date including dividends. Paying 3.5% dividend which he thinks is very safe. Growth level from a company like this is going to be quite moderate at 6%-7% annual estimated earnings growth rate and you are paying about 13-14 times forward PE. He would look at Pfizer (PFE-N) for its potential breakup story or spinoff. Also would consider Eli Lilly (LLY-N) which is had some good news on some of its drugs that have passed some stages. Putting a dividend stock into a TFSA means you are giving up some dividend tax credits.

One of the great things about this is that it is not a pure pharmaceutical company. One third is pharmaceutical, one third is consumer products and the other 3^rd is medical devices. Great company with a good dividend yield. If you can find a chance to buy on a pull back, do so

New CEO in April. Largest healthcare stock in the US with a AAA balance sheet. In recent years, has not done well in executing in either operation or growth and this is held the stock back. What has really helped the stock in the past several months has been increasing confidence that they will complete some of their late stage pharmaceutical products. Expect earnings to continue growing at a high single-digit clip.

9% upside, but catalysts in terms of management.