The Motley Foolยท2025-04-11 08:25Microsoft - Microsoft has a market cap of $2.6 trillion, leading to concerns about its growth potential, but it remains a strong investment for long-term, dividend-seeking investors [2] - The company faces potential headwinds from tariffs affecting production costs, but it generates substantial cash flow to adapt to economic changes [3][4] - Microsoft has a strong brand that allows it to pass on higher costs to consumers without losing market share [6] - The cloud division, Azure, is a significant growth area, with its AI business achieving an annual run rate of over $13 billion, growing by 175% year over year [7][8][9] - Despite a 7% decline in share price this year, it presents a buying opportunity for growth-focused and income-oriented investors [10] Johnson & Johnson - Johnson & Johnson's pharmaceutical segment is currently shielded from tariffs, providing temporary stability [11] - The company is facing thousands of lawsuits related to talc-based products, with a recent bankruptcy maneuver rejected by a judge, but it has a strong track record in litigation [12][13] - Despite legal challenges, Johnson & Johnson maintains a robust balance sheet and is one of the few companies with a credit rating higher than that of the U.S. government [14] - The pharmaceutical and medtech businesses are strong, with a deep pipeline of products leading to new approvals [15] - The company has a long history of dividend increases, having raised payouts for 62 consecutive years, solidifying its status as a Dividend King [16]