Is it Too Late To Jump Into Johnson & Johnson (JNJ)?

Many analysts, including myself, have been touting Johnson & Johnson (NYSE: JNJ) as a high quality, dividend paying blue chip for the last several months. The company is top quality with very stable, predictable, cash flows and a solid 3.5% dividend yield. In addition the company has upped it's payout in absolute terms every year for more than 25 years. Currently the payout stands at $2.16/share per year. Johnson & Johnson has some shorter term problems (recent product recalls and sub par earnings reports) but these should pass without any material affect on long term business prospects. In fact, because of these issues as recently as August 31st the stock was down 12% for the year to $57/share. At that point it was a clear longer term buy. Click here to get today's best trading ideas. Now that it has recovered 9% to $62/share in 3 weeks is it still a strong buy? Obviously not as compelling as it was in August, but according to conservative cash flow valuation it is still priced to deliver 7-8% annual total returns over the coming decade. I believe Johnson & Johnson's total return potential to be higher than the general market by about 2%/year, while at the same time having less risk than the general market (Beta of 0.58).So investors might have missed out on 9% over the past 3 weeks, but over the next 10 years the stock still offers attractive value relative to the rest of the equity market and treasury bonds.Johnson and Johnson ended the day higher by $.52 to $62.09/share.