How This Healthcare Giant Actually Earns Money

This video is part of our "Motley Fool Conversations" series, in which analyst Austin Smith discusses topics across the investing world.

In today's edition, Austin takes a closer look at healthcare mega-firm Johnson & Johnson (NYS: JNJ) . While the company may be best known for the products of its consumer-facing division, such as Band-Aid, Tylenol, and baby shampoos, it is actually its smallest divisions it terms of revenue. The company's pharmaceutical and medical device segments earn far more revenue. Being diversified across these three segments makes the company far more stable than other healthcare players like Pfizer (NYS: PFE) and GlaxoSmithKline (NYS: GSK) , which are dependent on blockbuster drugs, and are more sensitive to patent cliffs. Bake into the mix the company's beta of 0.42, and a dividend of 3.5%, and you've got a great company to hang onto for the long haul.

Those are just a few reasons why Johnson & Johnson is included in our special, free report "Secure Your Future With 9 Rock-Solid Dividend Stocks." You can learn about the other eight stocks today. Just click here to discover the winners we've picked.

At the time this article was published Austin Smith owns shares of Pfizer. The Motley Fool owns shares of Abbott Laboratories and Johnson & Johnson.Motley Fool newsletter services recommendJohnson & Johnson and Pfizer. Try any of our Foolish newsletter servicesfree for 30 days. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story