Investors often view stocks in the Dow Jones Industrial Average
A lingering pain
The health care giant Johnson & Johnson
The problems aren't limited to the company's over-the-counter consumer products. Back in 2010, Johnson & Johnson faced high failure rates for its hip implant devices, resulting in a public relations debacle when the FDA criticized the company for not addressing the issue before 93,000 devices were implanted worldwide.
Johnson & Johnson's new CEO, Alex Gorsky, needs to resuscitate the company, whose share price has been basically flat for five straight years. In the midst of an ongoing investigation into Gorsky's involvement in alleged kickbacks with nursing-home pharmacy Omnicare, don't expect to see J&J's wounds to heal overnight.
A broken record
The story of rogue traders and evaporating profits at banking institutions has become quite stale in recent years, but JPMorgan Chase
In response to questions about the systematic risks presented by this recent debacle, CEO Jamie Dimon remarked, "Just because we're stupid doesn't mean everybody else was." While many investors, including Warren Buffett, believed JPMorgan emerged with a strong footing following the financial crisis, recent developments have stirred the waters and sent the bank's stock price down over 20%.
Greasing the palms
Much like diversified giant Johnson & Johnson, Wal-Mart's
The recent developments at these blue chip companies will present serious obstacles for management teams as they try to limit damage to their brands, revamp internal controls, and at the same time grow their businesses. Shareholder scrutiny will increase, and with good reason. Perhaps it would be wise to look elsewhere for dividend-paying stocks, at least until the dust settles. For ideas to boost your portfolio with dividends, start with our special free report, "Secure Your Future With 9 Rock-Solid Dividend Stocks." It's available for a limited time, so download your copy here.
Fool contributor Isaac Pino does not own shares in any of the companies mentioned in this article. The Motley Fool owns shares of JPMorgan Chase and Johnson & Johnson. Motley Fool newsletter services have recommended buying shares of Johnson & Johnson, as well as creating a diagonal call positions in Johnson & Johnson and Wal-Mart Stores. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.