One of our proprietary DailyWealth "investment systems" is signaling "buy" right now.
Back in March, we introduced a foolproof system for making safe long-term investments. Our system involves just one stock, Johnson & Johnson (JNJ). Why did we choose JNJ for our "system"?
Well, JNJ has all kinds of attributes the sophisticated investor demands when putting money to work. The company owns a suite of world-class brand names – like Listerine, Band-Aid, Neutrogena, Splenda, Rogaine, and Tylenol. It earns high profit margins. It sports a bulletproof balance sheet. And its dividend payout is as consistent as the sunrise.
JNJ is such a dominant, wonderful business, its shares tend to decline significantly only when investors freak out and lose faith in the stock market, capitalism, and the Western way of life. Such declines occurred in 2000, 2002, and 2008. All were opportunities to load up on cheap JNJ shares.
As you can see from today's chart, JNJ shares have suffered a small "freak out." Broad market concerns have pushed the stock down from its 2010 high of $66 per share to $59. This leaves the company trading for around 12 times earnings and sporting a dividend yield of nearly 4%. For those with a long-term time horizon, this is "back up the truck" time.
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