"Second, the company's financial position is solid, which affords Johnson & Johnson a number of competitive advantages. Investors should take advantage of the price decline to buy the stock.

"J&J's stable of strong brands is impressive. Consumer brand names include Neutrogena, Lubriderm, Reach, Carefree, Listerine, Stayfree, Splenda, Tylenol, Sudafed, Zyrtec, and Pepcid AC.

"In pharmaceuticals, the firm has Remicade, a treatment for Crohn's disease; Topamax, for epilepsy and migraines; Procrit, for anemia; and Risperdal, a treatment for schizophrenia. Medical-technology products includes stents and surgical equipment.

"While this business portfolio has traditionally produced steady gains for J&J, results this year are likely to show a modest decline in growth. The firm is being hurt by a slowdown in the drug sector. Also, the strong U.S. dollar will impact overseas business.

"For 2009 overall, Wall Street is expecting per-share profi ts of $4.49, down around 1% from 2008. Pro?ts are expected to return to the growth track in 2010. Johnson & Johnson stock is already re?ecting much of the earnings slowdown.

"These shares trade at less than 12 times the 2009 estimate. For a company with such strong finances - the firm had nearly $13 billion in cash at the end of 2008 - and a blue-chip pedigree, the current valuation seems modest.

"Enhancing appeal is the stock's yield of 3.6%. Johnson & Johnson has boosted its dividend annually for more than 45 years. The solid balance sheet should provide plenty of support to the dividend as well as fund share repurchases and acquisitions.

"Johnson & Johnson offers a top total-return selection at current prices. The dividend yield is attractive in this low-yield environment, and the payout is safe. These shares represent a core holding for any portfolio.

"Please note that Johnson & Johnson offers a traditional dividend reinvestment plan. You must already be a shareholder of at least one share - and that share must be registered in your own name - in order to be eligible to join the DRIP. Dividends are paid in March, June, September, and December."

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