The Globe and Mail reports in its Wednesday, Aug. 19, edition that NCM Investments manager Michael Simpson is keen on Johnson & Johnson. The Globe's Shirley Won writes that this United States health care giant, whose annual dividend has grown 64 years in a row, is a compelling play because it is now focused on developing new drugs and medical technology, Mr. Simpson says. In 2023, New Brunswick, N.J.-based Johnson & Johnson, which has an AAA-rated balance sheet, spun out its slower-growing consumer health care division to a new company, Kenvue Inc., to eliminate the "conglomerate discount" holding back its stock. Johnson & Johnson's shares trade at about 20.5 times 2027 earnings, which is attractive and slightly less than the S&P 500 multiple, he adds. The company recently agreed to pay $5.5-billion (U.S.) to settle lawsuits alleging its talc products caused ovarian cancer and that removes a legal risk, Mr. Simpson says. Patent expiration on drugs remains a risk, but Johnson & Johnson is developing new ones.