Sex Sells: A Guide For the Socially Responsible Investor, Johnson & Johnson (JNJ), Pfizer Inc. (PFE)

The company has a 14.59 P/E and a yield of 3.30%. However, years of recalls hurt consumer confidence. The company expects to get the majority of recalled product lines back on the shelves this year. Lawsuits over their DePuy metal hip implant grind through the courts. Not to diminish the impact of these suits because several billion may be paid out over claims but the company earned $67.22 billion in 2012 and investors have trusted its dividend for 50 years.

Johnson & Johnson, enjoying steady but not thrilling growth in the high single digits, is not only a consumer staple defensive with its consumer products division (baby care, skin care, oral care, and OTC drugs) but has a health care kicker with the medical device and diagnostics division and pharmaceutical division with growth in oncology, rheumatology, and immunology drug sales.

Nudge, Nudge, Wink, Wink

Church & Dwight is a company dedicated to cleanliness, hygiene, and nudge, nudge, wink, wink, the finer things in life. This is the smallest of these companies with an $8.1 billion market cap but truly an up and comer. With a 24.83 P/E and a 1.70% yield (dividends paid continuously since 1901) it was one of the biggest movers among consumer staples for most of last year. Before you start sniggering Church & Dwight has teamed up with Indiana University for a three year academic study on various aspects of sexuality. Sexual health and wellness is here to stay and Church and Dwight (NYSE:CHD) is treating it most responsibly.

Church & Dwight is trading close to its 52 week high and the company reports on February 5. At the last ER in November CEO James Craigie said, “We increased market share on our four largest brands in the quarter, representing over 70% of our volume. In fact we achieved all-time high quarterly market shares on ARM & HAMMER liquid laundry detergent, XTRA liquid laundry detergent and TROJAN condoms.” On the call he also announced a $300 million share repurchase, raised guidance, and reported EPS rose 22.2% to $0.66 per share.

Afterglow, Er Afterthoughts

These three companies are dependable dividend payers, great defensive stocks with forward looking products promoting health, good hygiene and sexual wellness. Don’t make your socially responsible portfolio suffer for puritanical prejudices. Valentine’s Day is right around the corner.. have a little fling! Your portfolio will be grateful.

The article Sex Sells: A Guide For the Socially Responsible Investor originally appeared on and is written by AnnaLisa Kraft.

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