Johnson & Johnson (JNJ) has been one of the most well respected, well managed, and consistent companies for decades now. When thinking of dividend growth staples, one of the first companies that come to mind for most investors is JNJ. The company has increased the dividend an astonishing 54 consecutive years now. The positives have far outweighed the negatives over the years when discussing JNJ, however, when looking to invest, one should only do so at a price they feel is reasonable. Though JNJ is one of the all-time greats, sometimes others appear better. Just ask LeBron James, the best doesn't always win every year.

Investment Thesis

Based on current trading levels, with EPS not growing at a consistent rate with the price, Johnson & Johnson appears to be trading at a large premium, well above their normal levels. JNJ revenue growth has slowed over the last two years, free cash flow has dipped, and dividend growth has been decreasing since 2004, with investors not seeing double digit dividend growth since 2008. Do not get me wrong, I love everything about the company, but current levels do not peak my interest.

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