Johnson & Johnson (JNJ-N)

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.

It doesn't grow quickly, has a modest dividend and is diversified.

Concerns in pharmaceutical segment, as one particular drug facing patent cliff next year. Talc litigation still an overhang; once done, can focus on turning around core operations. Diversified, likes the pipeline. You can afford to be patient.

It is in the medical devices and pharma spaces and has spun off the consumer care division. The overhang is the talcum powder litigation. He hopes it will be settled before too long and then investors can concentrate on the growth aspect of the stock. It has set aside 8 to 10 billion dollars for a settlement.

Stock performance somewhat disappointing. She'd keep holding. After KVUE spinoff now simply a medical device, medical tech, and pharma company. Some drugs are going off patent, but successful in developing pipeline. Company still expects revenue to grow slightly as time goes on.

Very strong balance sheet, AAA credit rating. Nice dividend, increases every year. Ongoing talc litigation is the overhang, but positive steps toward resolution. Then PE multiple should lift. 

They report Tuesday. Their legal troubles could be ending, which would shift focus to their earnings. He think he will like what he sees.

He owns it partly for the defensive nature and partly for the business which leads to a focus on pharmaceuticals.

They spun off personal products, so JNJ is more a medical device company. They have huge cash from that spin-off, which could allow buying a medical device or biotech company. The talcum powder lawsuit is settling, too. They've raised their dividend for 54 years.