Forget Johnson & Johnson: Buy This Better Healthcare Stock Instead
Many healthcare investors look at Johnson Johnson (NYSE: JNJ) and see a good, safe dividend stock. But I see an investment that's full of uncertainty and risk.
The company continually runs into legal problems, and I can't help but wonder if one day it will follow in the path of 3M, which was also once seen as a top investment option for risk-averse investors who just wanted to collect a safe dividend; it, too, has run into many legal problems, and 3M is now looking to reset its payout after decades of dividend growth.
I would argue Johnson Johnson isn't worth the risk. And given the uncertainty it faces and its low growth rate, it's too expensive, even at what might seem to be a modest 22 times earnings. Instead of investing in Johnson Johnson, I suggest you consider a better and safer investment in AstraZeneca (NASDAQ: AZN).
Source Fool.com
