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J&J: A Winner on Both Sides of the Ball (Fool TV)

By Nick Kapur – Updated Apr 6, 2017 at 1:17PM

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In football parlance, they say offense wins games, but defense wins championships. Well, according to Fool analyst Nick Kapur, the same goes for stocks. And if you're looking to build a dynasty in your portfolio, you'd be hard-pressed to find a better-balanced outfit than veteran Johnson & Johnson (NYSE: JNJ).

Let’s start on defense: J&J is huge, tipping the scales with an approximately $175 billion market cap. It markets some of the world's most beloved and ubiquitous consumer brands, from Band-Aid to Tylenol to good ol' Johnson's Baby Oil. It operates all over the world, and its diverse revenue streams make it virtually impervious to currency risk. The company boasts huge cash flows, and its hard-charging management team makes certain it spins off a steady yield of 3.5%. Talk about defense.

Want to see some more points on the board? This 124-year-old American company is still growing after all this time, pushing downfield in emerging markets such as China, India, and Brazil -- and penetrating quickly wherever it goes. Sound like a world champion? Nick Kapur is betting on it. And with Johnson & Johnson currently trading around 12 times free cash flow, he thinks this is a perfect time to get in the game. 

For more from Fool TV:

Nick Kapur owns shares of J&J, which is an Income Investor recommendation. Motley Fool Options has recommended a buy calls position on J&J. The Motley Fool has a disclosure policy.

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