Johnson & Johnson (NYSE:JNJ) is a great stock for a new investor (particularly a new health care investor).

It's large. In fact, it's the largest pharma and medical tech company in the world.

It's diverse. The consumer and medical device segments combine for about 60% of the company's revenue, which helps balance out the more risky drug-making (pharma) division. Of course, pharma has driven growth at the company -- with 11% revenue growth last quarter -- and it's important to have exposure to the new growth opportunities such a division offers.

It's a dividend payer. J&J pays about a 3% yield. It's also a dividend aristocrat, meaning that it has increased its dividend for at least 25 consecutive years. And with a cash payout ratio under 50%, it looks like there's plenty more growth to come.

Check out the video below for more information about this long-term income play.

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David Williamson owns shares of Johnson & Johnson. Michael Douglass has no position in any stocks mentioned. The Motley Fool recommends Johnson & Johnson. The Motley Fool owns shares of Johnson & Johnson. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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