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You won't find a more prototypical blue-chip than health care giant
Johnson & Johnson(JNJ). The $227 billion firm has its hands in everything from everything from consumer products like Band-Aid brand bandages to pharmaceuticals and medical devices. Funds added onto their health care buying spree with an additional 7.5 million shares of JNJ in the first quarter.
Even though Johnson & Johnson's most consumer-facing business is found on pharmacy shelves, the bulk of the firm's net income is earned behind the pharmacy counter. JNJ offers a big benefit over pure-play pharma firms, however: the consumer and medical device segments offer investors diversification that few big pharma names can match -- especially as patent drop-offs (AbbVie's biggest detractor) plague valuations in the industry. A strong pipeline of new drug offerings should smooth out effects from patent expirations in the next few years.
Johnson & Johnson's balance sheet is in stellar shape right now. While the company only has around $5 billion in net cash after parting with considerable liquidity to acquire Synthes, the firm still has ample cash on hand to pay out its 2.9% dividend yield and to cover any other financial speed bumps in the road.
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