Three storm-lit steel safes sit in the rain with glowing stacks of cash at their base. Key Points Capital returns in the form of share buybacks and dividend payments are an attractive element for many investors, helping to boost value in ways other than through share price growth. In the current environment, companies able to provide solid cash flow for these returns are increasingly rare. Three names to keep an eye on for their cash flow and returns include Gilead Sciences, Applied Materials, and Qual ...

Core Insights - Johnson & Johnson has a strong financial profile and growth prospects, highlighted by its status as a Dividend King with 63 consecutive years of dividend increases [1][2] - The company currently offers a dividend yield of 2.7%, significantly higher than the S&P 500 average [2] Financial Performance - In the third quarter, Johnson & Johnson reported $24 billion in sales, a nearly 7% increase year-over-year, and adjusted net income of over $6.8 billion, reflecting a 16% rise [4] - The company generated approximately $14.2 billion in free cash flow in the first nine months of the year, nearly matching the $14.5 billion from the same period last year, easily covering its dividend payments of $3.1 billion for the quarter and $9.3 billion year-to-date [5] - Johnson & Johnson ended the quarter with $19 billion in cash and $46 billion in debt, maintaining a AAA bond rating, which is among the best globally [6] Future Outlook - The company has raised its full-year sales outlook, now expecting a 5.7% growth to $93.7 billion, with adjusted earnings growth projected at 8.7% to $10.85 per share [7] - Johnson & Johnson plans to separate its orthopedics business to focus on six priority growth areas: oncology, immunology, neuroscience, cardiovascular, surgery, and vision, aiming for faster growth and higher margins post-separation [8][9] Strategic Initiatives - A key focus for Johnson & Johnson is its oncology business, with a target of $50 billion in sales by 2030, supported by over $10 billion in R&D investments [10] - The company has made strategic acquisitions, such as the $2 billion purchase of Ambrx, and is reportedly in talks to acquire Protagonist Therapeutics, enhancing its oncology pipeline [11] - Continued investments in oncology and other priority areas are expected to support ongoing dividend growth and reinforce the company's commitment to shareholder value [12] Investment Strength - Johnson & Johnson is characterized as a financial fortress with strong free cash flow, enabling it to sustain high dividend payouts while reinvesting in business growth, making it one of the safest high-yielding dividend stocks available [13]

NovoCure (NVCR) could be a solid choice for investors given its recent upgrade to a Zacks Rank #2 (Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.Individual ...