Ah, the mighty blue chip. For many investors out there, nothing compares to it. When we're talking blue chips, we're talking safety and reliable growth over time. They are, indeed, the glue of a good diversified portfolio.

Which brings me to Johnson & Johnson (NYSE:JNJ). I feel compelled to discuss this particular stock because my Foolish colleague Rich Smith performed a great analysis on the company's current state. His conclusion? The stock is overvalued.

While I concur with his conclusion, I must admit that after reading his study, I actually came away with the desire to buy the stock instead of waiting for further pullbacks, as he suggested. Sounds weird, I know, but this company has such a reputation for creating long-term shareholder value that I found myself once again wanting to get in on the action.

Although buying into such a quality investment at any price is tempting, it probably wouldn't be advisable. After all, you have to discount the cash flows, compute margins of safety, etc. Remember, valuation is key.

Nevertheless, I strongly urge Fools to put this one on their watch list. Johnson & Johnson is just one of those companies that screams "Hey! If you're just starting out in your investment career, consider me!" It's a profitable entity that has been around for years and finds itself firmly entrenched in the halls of the Dow Jones Industrials. Its long-term chart shows excellent performance over time, and the shorter ten-year graphic still impresses.

That's not to say that one should be lulled into banking on the past; simply put, we all know it can't predict the future.

This is where dividends come in. Check out the payout history for Johnson & Johnson. We see a consistent, steady pattern of increases. Furthermore, this company should still be relevant in the future, as it arguably is tops in the brand equity department and deals with products important to the aging boomer population (such as pharmaceuticals) and items for everyday use (including shampoos and Band-Aids). I believe that storing this stock away for the long haul would add value to a retirement plan.

For great dividends, an impressive brand, healthy margins, and a good return on equity (Investors Business Daily gives it an A in this area), keep J&J in mind.

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What do you think of Johnson & Johnson? Is it cheap or expensive? Let us know your Foolish thoughts at the company's discussion board.

Fool contributor Steven Mallas owns none of the companies mentioned. The Fool has a disclosure policy.