"For our special featured stock of the month, we chose Johnson & Johnson (NYSE: JNJ)," says Vita Nelson, a specialist in dividend reinvestment plans. Here's the latest from Direct Investing.

"We think that enrollment in Johnson & Johnson's DRIP makes the perfect gift this holiday season because it is one of the most widely recognized names in the world.

"In addition, the company has a long history of earnings and dividend growth, along with its solid balance sheet, make it ideal for long-term accumulation as a core holding.

"Founded in 1885, Johnson & Johnson is a major health-care products company that derived about 49% of its $63.7 billion in 2008 sales from overseas.

"It makes prescription drugs, baby-care toiletries, contact lenses, surgical instruments, diagnostics, contraceptives, anti-infective products, and skin-care items. Its consumer brand names include Band-Aid, Monistat, Neutrogena, Tylenol, Stayfree, and Reach. 

"Typically, the company spends at least 12% of its revenue on research and development. Earnings per share were $4.57 in 2008, compared with $4.15 in the previous year, and consensus estimates call for the company to earn about $4.58 in 2009 and $4.93 in 2010. 

"The annual dividend has been increased for 47 consecutive years, and now stands at $1.96 per share, providing a yield of 3.12%."