Johnson & Johnson (JNJ): Expensive, But Could It Be A Buy?

dividend growth investing, value investing, discounted cash flow analysis
Johnson & Johnson (JNJ) Dividend Growth Stock Analysis 2016
Johnson & Johnson (NYSE:JNJ) is a $325 B giant in the healthcare space. The company sells to consumers with brands such as Tylenol, Motrin, Listerene, Benadryl, Sudafed and many more. The consumer segment provides a stable base for the company with consistent demand whether the economy is booming or busting. Johnson & Johnson is more than just a consumer-centric company and also operates in the higher margin, but more variable pharmaceutical and medical device space.
Johnson & Johnson is the 2nd largest position in my portfolio for good reason. The consistent growth year after year and management's willingness to reward shareholders with higher dividends is the obvious draw for investors.
On a price basis, Johnson & Johnson has far outperformed the broader S&P 500 year to date. Through Friday's close, Johnson & Johnson has seen its share price increase 15.1% from the end of 2015 compared to a 4.1% rise for the S&P 500.

Unfortunately, a large increase in the share price means a decline in the future return prospects, all else being equal. So what do the expected returns look like now?
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Seeking Alpha - Johnson & Johnson (JNJ) Dividend Growth Stock Analysis 2016