5 Best Widow and Orphan Stocks To Buy

1. Johnson & Johnson (NYSE:JNJ)

Number of Hedge Fund Holders: 85

Dividend Yield as of December 21: 2.54%

Johnson & Johnson (NYSE:JNJ), an American multinational healthcare company, is one of the best widow and orphan stocks to consider for a safe portfolio. Johnson & Johnson (NYSE:JNJ) paid a $1.13 per share quarterly dividend to shareholders on December 6. 2022 marked the 60th consecutive year of dividend increases by the company. 

On December 12, Citi analyst Joanne Wuensch raised the price target on Johnson & Johnson (NYSE:JNJ) to $205 from $198 and maintained a Buy rating on the shares. The analyst is looking for stocks “that will swim past the pandemic.” She does not anticipate it will be an “easy year” to invest in medical technology, but says it “will be one of recovery driven by more level-set expectations and product cycles.”

According to Insider Monkey’s third quarter database, 85 hedge funds were bullish on Johnson & Johnson (NYSE:JNJ), compared to 83 funds in the last quarter. Ken Fisher’s Fisher Asset Management is the biggest stakeholder of the company, with nearly 6 million shares worth $967.2 million.

In its Q2 2022 investor letter, Mayar Capital, an asset management firm, highlighted a few stocks and Johnson & Johnson (NYSE:JNJ) was one of them. Here is what the fund said:

“Johnson & Johnson (NYSE:JNJ) is currently our largest position and a long-standing holding. The majority of the group’s sales comes from its collection of pharmaceutical franchises, but a large majority (~45%) comes from its collection of medical device businesses and its consumer brands.

Here’s how JNJ makes and spends a dollar of revenues: As of 2021, about 55 cents of that dollar comes from its pharmaceutical sales – sales of drugs to pharmacies and distributors – while 30 cents come from the sale of medical devices, such as surgery equipment and orthopedics. The rest of that dollar in sales comes from sales of JNJ’s consumer brands such as Listerine mouthwash, Nicorette nicotine tablets and Neutrogena cosmetics (…read more)

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