Without a doubt, Johnson & Johnson (JNJ) is a wonderful company. More than that, I think it could be fair to make the argument that this company offers the safest dividend in the entire stock market. This is why JNJ was one of the companies that I targeted when the market sold off recently, adding to my position twice at what I believed to be discounted prices.

Since then, JNJ shares have rallied strongly. In recent weeks, I’ve written a lot about my belief that the recent broad market rally being irrational. In my view, the data surrounding COVID-19 and its impact on the economy is being overshadowed by exuberance surrounding recent stimulus. And, I don’t think that even the highest quality companies have been spared by this irrationality. Although I was buying JNJ shares in late March, in today’s volatile market, in mid-April, I think they’ve gone from offering a respectable margin of safety to being overvalued in relatively short order.

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