Johnson & Johnson’s Pharmaceutical segment offers products in various therapeutic areas, including immunology, infectious diseases, neuroscience, oncology, pulmonary hypertension and cardiovascular and metabolic diseases.
The Medical Devices segment provides electrophysiology products to treat cardiovascular diseases; neurovascular care products to treat hemorrhagic and ischemic stroke; orthopedics products in support of hips, knees, trauma, spine, sports and other; advanced and general surgery solutions that focus on breast aesthetics and ear, nose and throat procedures; and disposable contact lenses and ophthalmic products related to cataract and laser refractive surgery under the Acuvue brand.
Shareholders receive a 2.50 % yield. Citigroup’s $210 price target on Johnson & Johnson stock compares with a consensus target of $191.42. The shares closed at $180.46 on Friday.
McDonald’s
The legacy fast-food heavyweight is a solid pick when the economy goes south, and is among the safest large-cap restaurant plays. McDonald’s Corp. (NYSE: MCD) operates and franchises McDonald’s restaurants in the United States and internationally.
The company’s restaurants offer hamburgers and cheeseburgers, chicken sandwiches and nuggets, wraps, fries, salads, oatmeal, shakes, desserts, sundaes, soft serve cones, bakery items, soft drinks, coffee, and other beverages, as well as a breakfast menu, including biscuit and bagel sandwiches, breakfast burritos, hotcakes and other sandwiches. As of December 31, 2021, the company operated 40,031 restaurants.
McDonald’s earnings jumped a strong 19% a beat estimates in the most recent period. Revenue rose 10% to $5.67 billion, also topping forecasts. In addition, same-store sales, which is a huge metric for the company, jumped 11.8%. While that number represented a big drop from prior quarters, it was much better than gloomy Wall Street expectations. U.S. comparison rose 3.5%, barely eclipsing the consensus target.
The dividend yield is 2.2%. UBS has a Wall Street high $290 target price. The consensus target is $280.79, and McDonald’s stock close on Friday at $249.16.
For the most part, each of these Dividend Aristocrats fits into the defensive stocks category. While they are much better ideas now than momentum and high-beta stocks, the reality is a very big correction could still be looming. It makes sense for investors to scale buy shares over the summer, adding to position on big pullback days like last Friday.
There is no way to sugarcoat the current situation, and what could happen as we enter into “sell in May and go away” time. So it would be very prudent to raise cash from other more aggressive ideas, and rotate slowly into these blue-chip market leaders.
Originally posted at 24/7 Wall St.
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