Jim Cramer’s Recession Portfolio: Top 5 Stock Picks

2. Johnson & Johnson (NYSE:JNJ)

Number of Hedge Fund Holders: 83

Johnson & Johnson (NYSE:JNJ) is Jim Cramer’s top stock pick from the healthcare sector for a severe recession. As of July 29, Johnson & Johnson (NYSE:JNJ) has gained 1.74% year to date and is offering a forward dividend yield of 2.61%. The company is a dividend aristocrat and has been consistently growing its dividends for well past 50 years. The company has an annual payout ratio of 43.14% and a 5-year dividend CAGR of 5.87%.

On July 19, Johnson & Johnson (NYSE:JNJ) released market-beating earnings for the fiscal second quarter of 2022. The company reported earnings per share of $2.59 and exceeded Wall Street expectations by $0.04. Johnson & Johnson (NYSE:JNJ) reported revenue of $24.02 billion for the quarter, up 3.04% year over year, and ahead of market consensus by $195.47 million.

On July 20, SVB Securities analyst David Risinger revised his price target on Johnson & Johnson to $194 from $200 and reiterated a buy-side Outperform rating on the shares.

Hedge funds are piling into Johnson & Johnson (NYSE:JNJ). At the close of Q1 2022, 83 hedge funds were long Johnson & Johnson (NYSE:JNJ) with stakes worth $7.40 billion. This is compared to 83 positions in the preceding quarter with stakes worth $7.38 billion.

In the second quarter of 2022, Bailard Inc raised its stakes in Johnson & Johnson (NYSE:JNJ) by 10%, bringing them to $23.39 million. As of June 30, Bailard Inc owns over 0.13 million shares of Johnson & Johnson (NYSE:JNJ) and is the largest shareholder in the company.