Adding to Johnson & Johnson

After you receive this Alert, we will be buying 50 shares of Johnson & Johnson (JNJ) at roughly $128.89. Following the trade, JNJ will represent 2.81% of the portfolio.

Today's trade follows our Monday afternoon buy (see here) and is in line with our guidance from Monday morning (see here), where we listed out buy levels for all of our holdings.

With Treasury yields continuing to fall following overnight rate cuts out of India, New Zealand and Thailand (see here), we believe JNJ represents a strong name in which to put funds to work. The healthcare sector, despite U.S. political headline risk, remains staples-like in nature and as a result, a safe haven when global growth concerns arise. As it relates to JNJ specifically, we view this as a strong choice within the sector due to our view that Pharmacy operations will continue to grow above industry rates, and the medical device business continues to show signs of improvement. Also, as a reminder, last Friday a Kentucky jury sided with Johnson & Johnson on talc -- though we reiterate that talc litigation is far from over and New Jersey is the state that represents the greatest challenge.

Additionally, at a higher level, we believe the response of the U.S. 10-year Treasury yield, which is at near multi-year lows this morning, following foreign central banks' rate-cutting actions, makes the yield on shares of JNJ all the more attractive. As a result, we view the ~3% level at which the dividend yield is now hovering (coupled with a below market P/E valuation) as a key area of support.

Action Alerts PLUS, which Cramer manages as a charitable trust, is long JNJ.