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"In recognition of our solid results in 2005, our very strong financial position, and our confidence in the future of the corporation, the Board has voted to increase our dividend for the 44th consecutive year," said William C. Weldon, Chairman and Chief Executive Officer of the Company.

Shares of Johnson & Johnson (NYSE:JNJ) at 58 are cheap relative to both the pharmaceutical sector and the market as a whole. JNJ isn't flashy, but it is very profitable with an S&P earnings quality grade of A+, and consistently high 29% return on equity.

Normally when I recommend a stock, I make a detailed investment case for it. With Johnson & Johnson (JNJ) the stock almost sells itself.

JNJ, as a senior pharmaceutical company, is largely immune from economic cycles and has deep competitive advantages over others due to its large financial resources, scale of operations and worldwide sales force. Good stuff.

JNJ 1-yr chart:

Related: More opinion and analysis of Johnson & Johnson