My recent column on General Electric (NYSE:GE) was a nice thought experiment, so I decided to check whether based on the same methodology, the stock of Johnson & Johnson (NYSE:JNJ) - an essential equity component in any income growth portfolio - could actually be worth significantly less than its current value of $117.
Say $98, for example.
What a great opportunity would that be for dividend growth investors.
Opportunity
Although it manufactures outstanding products, J&J has never been a truly compelling equity investment given my personal perception of equity risk, one reason being its highly inefficient capital structure.
