Top 5 Blue Chip Stocks to Buy in 2022

3. Johnson & Johnson (NYSE:JNJ)

Number of Hedge Fund Holders: 83

Johnson & Johnson (NYSE:JNJ) is a blue-chip stock that also counts as a dividend aristocrat, having increased its dividend payment for 59 consecutive years. Founded in 1886 and based in New Jersey, the firm offers healthcare and pharmaceutical products around the globe. As of March 18, its dividend yield stands at 2.40%.

BofA analyst Geoff Meacham reinstated coverage of Johnson & Johnson (NYSE:JNJ) on March 2 with a ‘Neutral’ rating and a $185 price target. He is positive about the firm’s near-term growth prospects, as well as its ‘safe haven’ status given the current macro and geopolitical environment.

In the fourth quarter, Johnson & Johnson (NYSE:JNJ) posted an EPS of $2.13, outperforming estimates by $0.01. Revenue for Q4 stood at $24.80 billion, an increase of 10.36% in comparison to the year-ago quarter, but below analysts’ estimates by $485.39 million.

83 hedge funds were bullish on Johnson & Johnson (NYSE:JNJ) at the end of the fourth quarter, with a combined value of $7.38 billion. Fundsmith LLP was the leading shareholder in Johnson & Johnson (NYSE:JNJ) during the fourth quarter, holding 7.21 million shares worth $1.23 billion.

Here’s what Distillate Capital had to say about Johnson & Johnson (NYSE:JNJ) in its Q2 2021 investor letter:

“The largest additions in the rebalance, Johnson & Johnson was around 50 and 40 basis points incrementally. J&J underperformed in the quarter while its normalized free cash flows held steady and so its position size was topped off to match the stable cash flows.”