Markets

Insider Trading

Hedge Funds

Retirement

Opinion

Jim Cramer on Johnson & Johnson (JNJ): ‘Make Good Money Just By Reinvesting Their Juicy Dividends’

We recently published an article titled Jim Cramer Discussed 9 Stocks for This Week’s Game Plan. In this article, we are going to take a look at where Johnson & Johnson (NYSE:JNJ) stands against the other stocks Jim Cramer recently talked about.

Jim Cramer, the host of Mad Money, recently discussed this week’s events on Wall Street, which included President-elect Donald Trump’s inauguration and several companies’ earnings reports. Cramer touched on the broader theme of business operations, reflecting on how companies generally want the freedom to operate with minimal interference and lower taxes. He posed the question of whether that’s unreasonable, noting that it really depends on one’s perspective.

“Very unreasonable if you think big business is inherently nefarious and all these companies are run by greedy oligarchs, but if you believe in free market capitalism, letting businesses do what they want within certain limits, well that is the name of the game.”

READ ALSO 9 Stocks on Jim Cramer’s Radar and Jim Cramer’s Lightning Round: 7 Stocks Under the Spotlight

When discussing Trump’s inauguration, Cramer highlighted that Trump seems intent on rolling back many of the regulations put in place by the Biden administration, including closing borders and taking aggressive steps against undocumented immigration. While acknowledging that not all of Trump’s plans might be realized, Cramer remarked that some of his policy changes could be enacted quickly, while others might never reach the Supreme Court. Regardless, he noted that it appears Trump is preparing for a strong push to support business interests.

“That’s the only thing that can justify this market’s recent rally. Now, my interactions with soon-to-be President Trump tended to revolve around the stock market, which he thinks of as the true barometer of his job performance. It’s funny because Biden never cared about the stock market even though stocks did great during his administration.”

According to Cramer, Biden approached his presidency with a focus on labor and class, whereas Trump has made it clear that he intends to prioritize business and capital. He expressed little expectation that this would change in Trump’s second term, suggesting that there will be plenty of executive orders to analyze moving forward.

“Here’s the bottom line: As you wrap up the Biden administration, even though I’ve been very critical of his approach to the business, stocks have done well. The Dow is up 41%, the S&P is up 58%, and the Nasdaq recorded 49%. Any other president would be proud of that track record. The fact that Biden seems to not be, maybe it says pretty much everything.”

Our Methodology

For this article, we compiled a list of 9 stocks that were discussed by Jim Cramer during the episode of Mad Money on January 17. We listed the stocks in the order that Cramer mentioned them. We also provided hedge fund sentiment for each stock as of the third quarter of 2024, which was taken from Insider Monkey’s database of 900 hedge funds.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).

A smiling baby with an array of baby care products in the foreground.

Johnson & Johnson (NYSE:JNJ)

Number of Hedge Fund Holders: 81

Johnson & Johnson (NYSE:JNJ) is a full-service healthcare company involved in the research, development, production, and sale of a wide variety of healthcare products. The company will announce its fourth-quarter results this week and Cramer remarked:

“Wednesday we got some real firecrackers… We also get results from two household names, Procter & Gamble and Johnson & Johnson. I think Procter might struggle with the strong dollar in China while J&J still has to deal with talc asbestos lawsuits and the recent acquisition of Intra-Cellular for $14 billion, which could threaten its pristine credit rating. The market has turned against these kinds of stocks viciously. Too slow growing. I think you can put either way though and make good money just by reinvesting their juicy dividends.

Doesn’t help that all pharma’s are under the microscope as President Biden rushed out a series of drugs that Medicare will try to get better prices for. This is the one part of the Inflation Reduction Act that actually reduces inflation at the expense of the drug companies. One of the most popular medicines for instance of the year Wegovy, that’s the weight loss drug from Novo Nordisk will get a ton of scrutiny as the White House put it on the list.”

Cramer also mentioned that Eli Lilly has a comparable drug, and now people are concerned that the same issues could arise when it faces regulatory review, causing the stock to drop once again. He acknowledged that the decline wasn’t surprising, but it still hurt, especially with so many other stocks seeing strong gains.

Overall JNJ ranks 6th on our list of the stocks Jim Cramer recently talked about. While we acknowledge the potential of JNJ as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than JNJ but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.

Disclosure: None. This article was originally published at Insider Monkey.

Forget Nvidia: This Robotics Stock Is Your 100x Ticket

AI game is changing.

The chip guys, like Nvidia, they had their moment. The first AI wave? They rode it high.

But guess what? That ride’s over. Nvidia’s been flatlining since June 2024.

Remember the internet boom? Everyone thought Cisco and Intel were the kings, right? Wrong. The real money was made by the companies that actually used the internet to build something new: e-commerce, search engines, social media.

And it’s the same deal with AI. The chipmakers? They’re yesterday’s news. The real winners? They’re the robotics companies, the ones building the robots we only dreamed about before.

We’re talking AI 2.0. The first wave was about the chips, this one’s about the robots. Robots that can do your chores, robots that can work in factories, robots that will change everything. Labor shortages? Gone. Industries revolutionized? You bet.

This isn’t some far-off fantasy, it’s happening right now. And there’s one company, a robotics company, that’s leading the charge. They’ve got the cutting-edge tech, they’re ahead of the curve, and they’re dirt cheap right now. We’re talking potential 100x returns in the next few years. You snooze, you lose.

Here’s the catch (it’s a good one): To uncover this sleeping giant, you’ll need our exclusive intel.

We want to make sure none of our valued readers miss out on this groundbreaking opportunity!

That’s why we’re slashing the price of our Premium Readership Newsletter by a whopping 70%.

For a ridiculously low price of just $29.99, you can unlock a year’s worth of in-depth investment research and exclusive insights – that’s less than a single restaurant meal!

Here’s why this is a deal you can’t afford to pass up:

• Access to our Detailed Report on this Game-Changing AI Stock: Our in-depth report dives deep into our #1 AI stock’s groundbreaking technology and massive growth potential.

• 11 New Issues of Our Premium Readership Newsletter: You will also receive 11 new issues and at least one new stock pick per month from our monthly newsletter’s portfolio over the next 12 months. These stocks are handpicked by our research director, Dr. Inan Dogan.

• One free upcoming issue of our 70+ page Quarterly Newsletter: A value of $149

• Bonus Reports: Premium access to members-only fund manager video interviews

• Ad-Free Browsing: Enjoy a year of investment research free from distracting banner and pop-up ads, allowing you to focus on uncovering the next big opportunity.

• 30-Day Money-Back Guarantee:  If you’re not absolutely satisfied with our service, we’ll provide a full refund within 30 days, no questions asked.

 

Space is Limited! Only 1000 spots are available for this exclusive offer. Don’t let this chance slip away – subscribe to our Premium Readership Newsletter today and unlock the potential for a life-changing investment.

Here’s what to do next:

1. Head over to our website and subscribe to our Premium Readership Newsletter for just $29.99.

2. Enjoy a year of ad-free browsing, exclusive access to our in-depth report on the revolutionary AI company, and the upcoming issues of our Premium Readership Newsletter over the next 12 months.

3. Sit back, relax, and know that you’re backed by our ironclad 30-day money-back guarantee.

Don’t miss out on this incredible opportunity! Subscribe now and take control of your AI investment future!


No worries about auto-renewals! Our 30-Day Money-Back Guarantee applies whether you’re joining us for the first time or renewing your subscription a year later!

A New Dawn is Coming to U.S. Stocks

I work for one of the largest independent financial publishers in the world – representing over 1 million people in 148 countries.

We’re independently funding today’s broadcast to address something on the mind of every investor in America right now…

Should I put my money in Artificial Intelligence?

Here to answer that for us… and give away his No. 1 free AI recommendation… is 50-year Wall Street titan, Marc Chaikin.

Marc’s been a trader, stockbroker, and analyst. He was the head of the options department at a major brokerage firm and is a sought-after expert for CNBC, Fox Business, Barron’s, and Yahoo! Finance…

But what Marc’s most known for is his award-winning stock-rating system. Which determines whether a stock could shoot sky-high in the next three to six months… or come crashing down.

That’s why Marc’s work appears in every Bloomberg and Reuters terminal on the planet…

And is still used by hundreds of banks, hedge funds, and brokerages to track the billions of dollars flowing in and out of stocks each day.

He’s used this system to survive nine bear markets… create three new indices for the Nasdaq… and even predict the brutal bear market of 2022, 90 days in advance.

Click to continue reading…