J&J's diversified business model -- the company sells everything from band-aids to oncology drugs -- has kept it growing in good times and bad. The company achieved 22% profit growth last year, compared with an industry average of -0.5% and a return on equity of 30% vs. -3.5%. Yet despite its strong performance, JNJ's stock trades on par with its competitors.
Revenues are projected to drop this year, but UBS analyst Bruce Nudell, who rates JNJ a "buy," thinks sales will resume single-digit growth in 2010 and 2011. Until then, investors can take comfort in the dividend.
--M.K.
