Recession-Proof Stock #5: Johnson & Johnson (JNJ)
Health care is the Holy Grail for investors in this horrible market. I’m not so convinced.
When everyone jumps on a bandwagon, I usually like to jump off. It seems like everyone is preaching the merits of owning health
care stocks. And when I say everyone, I mean everyone. Even the barber is touting this sector as a place to be during this recession
and beyond. We shall see about that.
Instead of focusing on the space, how about looking at a specific name?
I love Johnson & Johnson (JNJ). At current prices, the stock trades
for just 11 times trailing earnings and 10 times forward earnings. Those levels are historically low for a leader in the industry.
Add in a nice dividend, and JNJ makes for a great recession-proof stock.
The only caution is with respect to Washington and policies moving the country to universal health care. But at the end of the
day, that regulatory risk is worth taking in my opinion.
Comments are currently unavailable. Please check back soon.