Buy, Sell, or Hold: Johnson & Johnson

The following video is part of our "Motley Fool Conversations" series, in which consumer goods editor/analyst Austin Smith and senior technology analyst Eric Bleeker discuss topics across the investing world.

In a continuation of their "Buy, Sell, or Hold This Stock" series, Eric and Austin move on to Dow component Johnson & Johnson. Austin rates Johnson & Johnson a hold today. Despite an incredible dividend, brand strength, and better diversification than just about any other company in this space, a few recent quality slips are a nagging concern that it's become a "new normal." Austin suggests holding off long enough to see how well JNJ reacts to -- and hopefully corrects -- these quality issues.

Yet there is no denying the appeal of that 3.9% dividend, which was high enough for our analysts to name J&J one of our nine rock-solid dividend stocks.You can learn about the other companies that made the cut by clicking here now.

At the time this article was published Austin Smithowns shares of Pfizer.Eric Bleekerhas no positions in the stocks mentioned above. The Motley Fool owns shares of Johnson & Johnson.Motley Fool newsletter services recommendJohnson & Johnson, Pfizer, and Teva Pharmaceutical Industries. 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