Johnson & Johnson (JNJ) has declined 10% since its 52-week high in August. Now is the time to lock in its 2.7% yield.

For one thing, JNJ is a world-class business with a well diversified product portfolio sprawling across consumer products, Big Pharma and medical equipment.

Splitting that portfolio into two parts will not wreck any deep synergies. If anything, I see it as a long-term positive, allowing the medical and consumer sides of the company to compete more aggressively for sales and shareholder attention.

But right now, both sides of the company are attractive. Buying in before the split ensures that we establish a position across the board while we still can.

And at 16X next year’s combined EPS estimate, the stock is far from overdone in this market environment. Any move back toward safer havens logically leads to JNJ.

In that scenario, I’d like to highlight that yield. JNJ has a higher credit rating than the U.S. Treasury so its dividend stream is theoretically less risky than government bonds.

For that world-class quality, JNJ pays nearly double long-term Treasury yields. Unlike bonds, it even has potential to raise its dividend over time.

Five years ago, JNJ paid shareholders $0.80 per share quarterly. Now that payout is up 32% . . . and as one side or the other of the company expands, that trend can continue.

Buy JNJ under $162. My initial target is $180. And Inner Circle subscribers, this applies to you as well. Start with 5% on JNJ in your Value Sector.