With everything from medical devices to over-the-counter health items and prescription drugs, Johnson & Johnson remains one of the most diversified health care names on Wall Street. It also has one of the most exciting pipelines of new drugs in the sector, and it generates a little over half of its sales in international markets, which are expected to see higher spending on healthcare over the next 10 years and beyond. All that makes the stock an outstanding holding for conservative investors with a long-term investment outlook.
Shareholders receive a 2.38% yield. The Citigroup price target of $195 is well above the $186.53 consensus target. Johnson & Johnson stock closed at $178.19 on Friday.
PepsiCo
This is a top consumer staples stock that soon will be supplying the goods for summer picnics and backyard barbecues across the country. PepsiCo Inc. (NYSE: PEP) operates as a food and beverage company worldwide. Its Frito-Lay North America segment offers Lay’s and Ruffles potato chips; Doritos, Tostitos and Santitas tortilla chips; and Cheetos cheese-flavored snacks, branded dips and Fritos corn chips.
The Quaker Foods North America segment provides Quaker oatmeal, grits, rice cakes, natural granola and oat squares, as well as the recently name-changed Aunt Jemima mixes and syrups, and Quaker Chewy granola bars, Cap’n Crunch cereal, Life cereal and Rice-A-Roni side dishes.
PepsiCo’s North America Beverages segment offers beverage concentrates, fountain syrups and finished goods under the Pepsi, Gatorade, Mountain Dew, Diet Pepsi, Aquafina, Tropicana Pure Premium, Sierra Mist and Mug brands, as well as ready-to-drink tea and coffee, and juices.
Shareholders receive a 2.80% dividend. The PepsiCo stock price target at Morgan Stanley is $188, while the consensus target is $180.05. Shares closed at $169.76 on Friday.
These five stocks have reasonable upside to the Wall Street targets, and the companies all pay very dependable dividends, given the Dividend Aristocrat status. With even moderate appreciation in the shares prices of these top companies, investors should be looking at double-digit total return potential. In a market that is very long in the tooth, that makes a ton of sense now, especially given the economic tsunami we may be facing sooner rather than later this year.
Originally posted at 24/7 Wall St.
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