Johnson & Johnson (JNJ-N)

High in 2022, series of lower highs and lower lows since then. Only positive is that on the most recent pullback it pulled back to a higher low. If you own it as one position among many, you probably won't lose a bunch of $$. Doesn't see it being a leading stock in the near term. 

Lean into companies that are economically sensitive with pricing power; if their costs go up tomorrow, they can raise prices the next day.

He sold it in March since the earnings estimates were coning down and the fair market value dropped a bit. There are better places to go for free cash flow. The whole health care space is being attacked by the government.

Has a triple-A balance sheet and many drugs in the pipeline. But it pays only a 3.55% dividend, below interest rates, and still suffers the legal overhang of its talcum powder allegedly caused ovarian cancer.

It reports Tuesday when we should get a legal update about those suing JNJ for cancer allegedly being in their talcum powder.  It's been stuck in a range forever, though not in a perpetual downturn like other pharma. This could turn around on any big news on any new drug.

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.

It reports Wednesday. They're still dealing with the talcum power lawsuit and a new acquisition for $14 billion which hurt JNJ's pristine credit rating. The market has turned against this sector, but he feels you reinvest their juicy dividend.

Is a hodge-podge of consumer products, some medical business and an also-ran in businesses like hips and knees. This has always traded at a premium for being a well-run consumer package company that money managers can't get fired for owning. It's so big that it needs to be broken up.

You can own, collect the dividend and in coming years will likely be higher. This is mixed in with current worries over healthcare stocks, but this will pass. JNJ has stable earnings and cash flow. Happy to hold on.

JNJ hasn't been this cheap in many years, pays a 3.5% yield and boasts a super balance sheet. The sector is unloved, though. If you can handle the pain, you can get some gain.

Pays a 3.3% yield and has great drugs. Even with the talcum powder litigation, he'd buy it here.