Johnson & Johnson
You won't find a more prototypical blue-chip stock than Johnson & Johnson (JNJ - Get Report). This $297 billion health care giant owns a slew of consumer brands with household names, and it pays a hefty 2.67% dividend yield at current price levels. And with rising analyst expectations this week, JNJ is making the Rocket Stock cut this morning.
Johnson & Johnson has a reputation that precedes it. The firm's consumer brands include major labels like Band-Aid, Tylenol, Neutrogena and Acuvue but it's the firm's non-consumer pharmaceutical and medical device units that provide the lion's share of Johnson & Johnson's sales. JNJ's diversified product portfolio provides investors with a lot more protection than a typical big pharma or medical device firm would enjoy. Black clouds like patent expiration are mitigated by the fact that JNJ is pulling revenues from multiple sources.
From a financial standpoint, Johnson & Johnson is in solid shape. While the acquisition of big-ticket medical device maker Synthes used a big chunk of JNJ's net available cash, the firm still carries $12.1 billion in net cash on its balance sheet right now. Look for a strong drug pipeline to add some potential growth catalysts to JNJ's huge income statement in the medium-term.