"Johnson & Johnson (NYSE: JNJ) has vast holdings, but its strategy is simple: Support a deep pipeline of new drugs and medical devices with an aggressive acquisition strategy and cost controls," notes blue chip investor Richard Moroney.

In his Dow Theory Forecasts, he adds, "And despite the recession, J&J has kept its financial footing, remaining one of the few companies with the top credit rating of AAA." Here's his long term outlook.

"This year the U.S. pharmaceutical market is expected to contract for the first time in 50 years as fewer people visit doctors or start new therapies for chronic conditions.

"Beyond 2009, an economic recovery should reinvigorate J&J, though it is too early to determine whether health-care reform will help or harm the company.

Continue reading Johnson & Johnson (JNJ): A triple A play

Johnson & Johnson (JNJ): A triple A play originally appeared on BloggingStocks on Wed, 29 Jul 2009 15:20:00 EST. Please see our terms for use of feeds.

"Overall, we believe quality technology stocks offer above-average growth potential and attractive valuations," says Gregory Dorsey.

In Stephen Leeb's The Complete Investor, he explains, "International Business Machines(NYSE: IBM) has plowed ahead despite a daunting economic and business environment; we are adding the stock to our Growth & Income Portfolio."

"For prudent investors in this challenging economy, most of the major technology companies are financially solid, often with little or no debt and lots of cash on their books. This makes them good long-term vehicles even if the economy remains off the rails for a prolonged period.

Continue reading IBM (IBM): Growth and value

IBM (IBM): Growth and value originally appeared on BloggingStocks on Thu, 18 Jun 2009 10:30:00 EST. Please see our terms for use of feeds.

"International Business Machines (NYSE: IBM) provides a good mix of rising earnings estimates, worldwide exposure and a safe dividend," says analyst Alex Kolb from Zacks Research.

"IBM was incorporated in the State of New York in 1911 as the Computing-Tabulating-Recording Co., changing its name to International Business Machines Corporation in 1924.

"And with the strength of its global on-demand model, IBM is experiencing strong revenue growth in all geographies, with robust growth in emerging markets worldwide.

Continue reading IBM: For stability and growth

IBM: For stability and growth originally appeared on BloggingStocks on Fri, 15 May 2009 10:50:00 EST. Please see our terms for use of feeds.

"Our confidence in this market is growing... albeit slowly; the fundamental blocks are already in place for a market bottom, and the technical blocks seem to be following," says Jim Stack, well known for having accurately forecast the market. housing and economic downturn.

In InvesTech Market Analyst, he suggests, "We are now stepping up our allocation. The newest addition to our Model Portfolio is VF Corp. (NYSE: VFC)."

"VF Corporation is the world's largest publicly held apparel manufacturer and distributor. It owns an incredibly diverse line of brands; including such well known names as Wrangler, Lee, North Face, Vans, and Nautica.

Continue reading VF Corp. (VFC): Dressed for success

VF Corp. (VFC): Dressed for success originally appeared on BloggingStocks on Tue, 05 May 2009 13:30:00 EST. Please see our terms for use of feeds.

"Earnings prospects for companies in the information technology (IT) sector are surprisingly resilient, and one of the best-placed and most recession-resistant IT stocks is IBM (NYSE: IBM)," notes Elliott Gue.

In Personal Finance, he adds, "In the recession of 2001, tech stocks were among the hardest hit groups in the S&P 500, but that was mainly a hangover from the technology bubble of the late 1990s that saw many big-cap tech firms soar to unprecedented valuation levels.

"The tech sector today bears no resemblance to what it was in the early part of this decade. The S&P 500 IT sector now trades at a slight valuation premium to the S&P 500 as a whole, and many of the largest names have impressive, cash-heavy balance sheets.

Continue reading IBM: For tech gains, bets on Big Blue

IBM: For tech gains, bets on Big Blue originally appeared on BloggingStocks on Tue, 07 Apr 2009 11:50:00 EST. Please see our terms for use of feeds.

"PepsiCo (NYSE: PEP) Pepsi is about as dependable a company as there is and the stock would be an excellent anchor for most portfolios," says value investor Nathan Slaughter.

In his Half-Priced Stocks, he says, "All told, PepsiCo has built an impressive lineup of 18 brands that each generate more than $1 billion in annual sales."

"Long ago, management realized that carbonated drink sales would fizzle out and per-capita consumption would become sluggish. In their place, bottled water and sports drinks became two of the fastest-growing categories. And Pepsi is the dominant player in both, with its Aquafina and Gatorade brands.

"Meanwhile, energy drinks have emerged as the industry's hottest segment -- with sales soaring from $1.2 billion in 2002 to more than $6.6 billion last year. Again, Pepsi is well-represented with Amp.

Continue reading PepsiCo (PEP): A portfolio anchor

PepsiCo (PEP): A portfolio anchor originally appeared on BloggingStocks on Thu, 26 Feb 2009 13:35:00 EST. Please see our terms for use of feeds.

"We are seeing quality names at fire-sale prices, and I think you must take advantage of that," says income expert Nilus Mattive in Dividend Superstars. Here's a trio of favorites.

"Pfizer (NYSE: PFE) recently reported great third-quarter results. The company tripled its profits from the same period a year ago. While last year's results were hurt by a one-time charge, Pfizer is obviously seeing continued demand for most of its drugs.

"I consider the stock dirt cheap, and while there is a slim chance of a dividend reduction, the shares absolutely belong in your long-term income portfolio at this level.

"I feel the same way about General Electric (NYSE: GE). While profits were down 22% this quarter, the company still boasts a AAA credit rating and a very attractive yield. It is a solid long-term income holding.

"Huaneng Power (NYSE: HNP) has been punished along with the rest of China's stocks. But things are going well on the fundamental front. The company increased its power generation 12.7% in the first three quarters of 2008, and revenues gained 36.8% over the same period a year earlier.

"It may post a loss because coal prices remain elevated, but I remain bullish on the company's long-term prospects, and consider it the best dividend-paying Chinese stock to own."

Steven Halpern's TheStockAdvisors.com offers a daily look at the latest market commentary and favorite stock picks and investment ideas from the nation's leading financial newsletter advisors.

Blue chip dividend stocks on sale: GE, Pfizer & Huaneng originally appeared on BloggingStocks on Tue, 11 Nov 2008 13:36:00 EST. Please see our terms for use of feeds.

"We've followed Warren Buffett's advice to 'buy American'," says Mark Skousen; his Hedge Fund Trader eyes Johnson & Johnson (NYSE: JNJ) and FPL Group (NYSE: FPL).

"Johnson & Johnson as well as FPL Group are two strong positions in companies that have suffered a few 'hiccups' during this historic panic selling, but are likely to survive and prosper in the next year.

"First, Johnson & Johnson, the health care and pharmaceutical giant, beat expectations in its most recent earnings report. The company's earnings jumped 30% to $3.3 billion on revenues of $15.9 billion. It currently is selling for only 15 times forward earnings -- a bargain price.

"Second,, FPL Group -- known as Florida Power & Light -- is a large Florida utility company that is holding up well. It, too, is a solid company that now is on sale because of the financial crisis.

"Revenues are down slightly to $15 billion, and earnings dropped 40% during the past year. But Florida Power is still profitable, and at 10 times next year's earnings, it should continue to recover.

"We think it is wise at this time to limit our exposure to the markets, and to keep our powder dry by focusing strictly on a few well-financed utilities and consumer product firms.

"Overall, we consider both Johnson & Johnson and FPL Group to be solid companies selling at a substantial discount to their real value."

Steven Halpern's TheStockAdvisors.com offers a daily look at the latest market commentary and favorite stock picks and investment ideas from the nation's leading financial newsletter advisors.

J&J and FP&L: 'Solid American values' originally appeared on BloggingStocks on Mon, 03 Nov 2008 14:00:00 EST. Please see our terms for use of feeds.

This post is part of a series in which TheStockAdvisors.com asked financial experts to name their top stock pick if McCain or if Obama wins the election.

"Should Obama win the election, we would look towards select sub-sectors of health care; one stock we would expect to benefit is health supply distributor, Cardinal Health (NYSE: CAH)," explains Kelley Wright, editor of the blue chip Investment Quality Trends.

"A President Obama will have to make good on his promise to deliver better health care. While this could create havoc for the pharmaceutical producers, drug therapies and medical supplies will have to be delivered.

"The 800lb. gorilla in the supply and distribution space is Cardinal Health. Cardinal is a global company whose distribution businesses consolidate pharmaceuticals and medical products from thousands of manufacturers into site-specific deliveries to retail pharmacies, hospitals, physician's offices, surgery centers and alternate care facilities.

"The company has recently taken steps to increase the percentage of cash flow into dividends and share repurchases to enhance shareholder value.

"The blue chip stocks that we recommend are chosen for the exemplary long-term dividend growth, a P/E ratio of 15 or less, a payout ratio of 50% or less, debt of 50% or less, and technical characteristics on the daily and weekly charts that suggests the potential for imminent capital appreciation.

"While the current dividend yield on Cardinal Health is comparatively low at around 1.0%, the upside potential for capital appreciation is quite large."

Steven Halpern's TheStockAdvisors.com offers a daily look at the latest market commentary and favorite stock picks and investment ideas from the nation's leading financial newsletter advisors.

Obama stock: Cardinal (CAH) delivers on health care promise originally appeared on BloggingStocks on Sun, 12 Oct 2008 13:00:00 EST. Please see our terms for use of feeds.

"'Easy hold' stocks have strong finances, consistent sales and earnings and moderate volatility; one such stock is Wal-Mart Stores (NYSE: WMT)," says Chuck Carlson in The DRIP Investor.

"Easy hold stocks are 'easy holds' for good reason -- their price action generally does not force you to make too many decisions about selling. And one that has held up quite well of late is Wal-Mart, the world's largest retailer.

"The firm's discount focus has been especially popular with consumers in recent months in light of the sluggish economy and job markets. The firm has beaten earnings estimates in each of the last four quarters. Record profits of $3.50 per share are expected for the current fiscal year ending January 2009.

"Long term, I expect Wal-Mart to provide the sort of steady sales and profit growth that will keep its stock trending higher.

"While I would not expect Wal-Mart to keep pace during the next big upward move in the market, I think the consistency of returns the stock will show over the next several years should be rewarding for investors looking for acceptable returns at moderate risk levels.

"Wal-Mart also offers a direct-purchase plan whereby any investor may buy shares directly, the first share and every share. Minimum initial investment is $250. However, Wal-Mart will waive the minimum if an investor agrees to automatic monthly investment via electronic debit of a bank account of at least $25."

Steven Halpern's TheStockAdvisors.com offers a daily look at the latest market commentary and favorite stock picks and investment ideas from the nation's leading financial newsletter advisors.

Wal-Mart: An 'easy hold' stock originally appeared on BloggingStocks on Thu, 09 Oct 2008 16:59:00 EST. Please see our terms for use of feeds.

In the latest annual survey in Barron's of professional investors Johnson and Johnson (NYSE: JNJ) was rated the world's most respected company," reports Ron Rowland and Brandon Clay.

In Invest With an Edge, the advisors look at the 123-company, which he selects as " a solid healthcare pick in a strong long-term uptrend."

"This New Jersey-based company has come a long way since corner drugstores sold their baby powder. Beginning as a pioneer in sterile medical supplies, they expanded into pharmaceuticals and related consumer products.

"Over the years, they've released ubiquitous brands such as Band-Aid, Rogaine, Listerine, Tylenol, even Splenda. Johnson and Johnson has become a household name.

"However, Johnson & Johnson is a healthcare company with deeper product lines; it is ivided into three segments: Consumer, Pharmaceutical and Medical Devices & Diagnostics.

Continue reading Johnson & Johnson (JNJ): The most 'respected' company

Johnson & Johnson (JNJ): The most 'respected' company originally appeared on BloggingStocks on Wed, 24 Sep 2008 12:15:00 EST. Please see our terms for use of feeds.

"I've always been a big fan of putting into the market on a regular basis regardless of what is happening in the overall market," explains Chuck Carlson, long considered one of the advisory industry's leading experts on dividend reinvestment plans.

Here, the editor of The DRIP Investor offers a 10-stock "autopilot" portfolio that is diversified among 10 high quality dividend-paying stocks and requiring a monthly investment of under $500.

Carlson says, "If I've learned anything in the more than a quarter of a century of following the markets, it is this fact - buying stocks when you know you should (i.e. during sharp down moves) is really difficult. Our heads says we should; after all, substantial market downturns create the best values.

"But our emotions usually take control, thus making it very difficult to pull the trigger and put money into the market when stocks are falling.

"That's why I've always been a big fan of 401(k) plans. With these investment vehicles, investment programs are put on 'autopilot,' with dollars being put into the market on a regular basis (usually each paycheck) regardless of what is happening in the overall market.

"Fortunately, investors can duplicate the autopilot feature of 401(k) plans with their DRIP investments by taking advantage of automatic monthly investment features provided by most DRIPs.

Continue reading 'Autopilot' portfolio: 10 stocks for long-term investors

'Autopilot' portfolio: 10 stocks for long-term investors originally appeared on BloggingStocks on Fri, 15 Aug 2008 17:44:00 EST. Please see our terms for use of feeds.

"Any further market weakness creates creates another opportunity to acquire some outstanding stocks," suggests Kelley Wright, noted for his focus on blue chip, dividend-paying stocks.

In his Investment Quality Trends newsletter, he looks at the benefits of keeping a long-term focus, the value of dividend districutions to an investor's long-term returns, and his current "timely ten" picks for conservative investor.

"The cash dividend for the Dow is $322.40. One year ago the dividend was $284.06. Amidst all the turmoil in the markets and the economy something must be going right with the Dow 30 companies because the dividend is ever climbing.

"Dividends, as we all know, can only come from the reality of earnings; you can't pay what you don't have. The dividend yield on the Dow is currently 2.66%, which represents an 11% downside to a 3.0% yield and the historically repetitive area of Undervalue.

"Will the Average make it down to that level? No one knows but that isn't the point. At current levels the upside is FAR greater, particularly in many of the stocks in our Undervalued area.

Continue reading For blue chip buyers: 'This too shall pass'

For blue chip buyers: 'This too shall pass' originally appeared on BloggingStocks on Fri, 25 Jul 2008 11:30:00 EST. Please see our terms for use of feeds.

"They don't get much more blue-chip than General Electric (NYSE: GE)," says Nilus Mattive. I his top-notch Dividend Superstars, he takes a look at the industrial gain which offers an indicated yield of 4.4%.

"GE is the only company that has remained in the Dow Jones Industrial Average from day one, the company was founded in 1890 by none other than Thomas Alva Edison to market his various inventions.

"GE's broad diversification is both a blessing and a curse. On one hand, it affords the firm plenty of protection from a major decline in any one business.

"On the other, it has led to a very complicated enterprise with inherently limited growth prospects. Yet despite the company's size, it has still managed to increase its revenues internally by about 9% a year.

Continue reading General Electric (GE): Blue chip bargain

General Electric (GE): Blue chip bargain originally appeared on BloggingStocks on Tue, 08 Jul 2008 09:30:00 EST. Please see our terms for use of feeds.

"Despite negative analyst commentary, General Electric (NYSE: GE) is one of the biggest and best blue-chip stocks," says Karim Rahemtulla. The contributing editor to The Oxford Club looks at the "global juggernaut."

"It's now more crucial than ever that your portfolio holdings are well-diversified, and GE is arguably the most diversified company in the world, with exposure to a plethora of sectors.

"Its GE's media businesses are performing well and will receive a boost from the Olympic Games this summer. And with oil prices soaring, GE's alternative energy businesses (wind turbines) are showing excellent growth and will benefit from the shift to alternative fuels and power generation.

"GE's aviation division is enjoying a boom from global growth in travel. And its medical division continues to benefit from strong growth, as the sector breaks out innovative new technology for a variety of ailments.From consumer products, to alternative energy, to aircraft engines and medical technology.

Continue reading General Electric (GE): A 'global juggernaut'

General Electric (GE): A 'global juggernaut' originally appeared on BloggingStocks on Fri, 20 Jun 2008 10:10:00 EST. Please see our terms for use of feeds.

"Our portfolio has been notably light on pharmaceuticals and consumer products; we're rectifying that by buying Johnson & Johnson (JNJ)," says Gregory Dorsey in Leeb's Income Performance Letter.

"Getting a handle on exactly what the 122 year-old company markets is no easy task, given the broad scope of its product line-up. And to say that J&J has been a resounding success on the corporate
stage would be an understatement.

"Through its more than 250 operating businesses, the parent company lays claim to being, among other things: the world's premier consumer health company, the largest medical devices and diagnostics company, the third-largest biologics company and the sixth-largest pharmaceuticals company.

"While acquisitions have played an important role in making the company what it is today, J&J has also achieved these milestones through internal growth. It boasts 75 consecutive years of rising sales.

Continue reading Johnson & Johnson (JNJ): A 'triple-A' rated play

Johnson & Johnson (JNJ): A 'triple-A' rated play originally appeared on BloggingStocks on Thu, 12 Jun 2008 11:44:00 EST. Please see our terms for use of feeds.

Back in April, I announced that I bought some shares of General Electric (NYSE: GE) for a trade. How has my trade been going? Pretty lousy.

I was amazed when I read a recent article by Melly Alazraki. She discussed GE's recent accomplishment (if you can call it an accomplishment) of hitting a price level not seen since May 2004. That price was $30.39. Yesterday, the intra-day low was $30.21, which was also the new 52-week low. What was the price I paid when I began my trading position? $32.09. As can be seen, I'm losing money on paper at the moment. Of course, when I bought GE at that price, I was not necessarily looking to be out of the stock the next day. I realized that it might be a few months, maybe more, before it rebounded back to perhaps $37 or $38 per share. So, my definition of trading in this case might be a little different than that of the typical trader.

However, I have to admit that, in the back of my mind, I thought the stock would have been higher by at least a couple bucks at this point. Why? Well, the dividend yield seemed too attractive to me. I mean, even now, isn't it slightly crazy that GE is yielding over 4%? How long will Wall Street allow it to exist at this level?

Continue reading Is General Electric a buy or a sell?

Is General Electric a buy or a sell? originally appeared on BloggingStocks on Wed, 28 May 2008 10:00:00 EST. Please see our terms for use of feeds.

3M Co. (NYSE: MMM) and Honeywell International Inc. (NYSE: HON) today reported better-than-expected third quarter results and raised their earnings guidance. But Caterpillar Inc. (NYSE: CAT) disappointed Wall Street and offered a gloomy outlook for the U.S. economy. That bad news pulled down 3M and Honeywell's shares, as well as pulling down the Dow Jones Industrial Average by triple digits.

"The third-quarter earnings that are coming out are the worst but we don't see a sharp bounce-back,'' Christina Bank & Trust's Scott Arminger told Bloomberg News. "Financial earnings will be pretty mediocre for a couple of quarters going forward.''

The maker of Post-It notes and countless other products reported net income of $960 million, or $1.32 per share, compared with $894 million, or $1.18 per share, a year earlier. Revenue rose 5.5% to $6.2 billion. Excluding one-time earnings, profit was $1.29 compared with $1.17 a year earlier. Analysts expected profit of $1.28 and revenue of $6.29 billion, according to Thomson Financial. 3M raised its earnings forecast to $5.54 to $5.62 for this year, compared with previous guidance of $5.40 to $5.60. It expects full year sales growth excluding the divestiture of the branded pharmaceutical business of 7% to 8%.

Honeywell's profit rose 14% to $618 million, or 81 cents per share and revenue rose 10 percent to $8.74 billion, helped by strength in its commercial aviation, defense and space markets. The results beat Wall Street consensus expectations of 82 cents on revenue of $8.59 billion.

Continue reading Caterpillar's gloomy outlook helps drag down market by triple digits

Caterpillar's gloomy outlook helps drag down market by triple digits originally appeared on BloggingStocks on Fri, 19 Oct 2007 10:41:00 EST. Please see our terms for use of feeds.

GE after the bell 9/14/06: selling off division doesn't affect stock price originally appeared on BloggingStocks on Thu, 14 Sep 2006 17:18:00 EST. Please see our terms for use of feeds.