GROWTH AND INCOME: Johnson & Johnson
Ticker: JNJ
Market Cap: $154.4 billion
P/E Ratio: 12
Earnings Growth: 9%
Dividend Yield: 3.5%

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.


Procter & Gamble

Criteria include long-term earnings growth of 7% or more, dividend yield greater than the S&P's 3.1%, and P/E ratios below 27. All data related to stock price as of June 1, 2009. P/E ratios based on the previous 12 months' reported earnings. Earnings growth based on Wall Street estimates for the next three to five years.
Last updated November 04 2011: 11:59 AM ET
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