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Johnson & Johnson (NYSE: JNJ) is an iconic name in healthcare, with a history that goes back to the 1800s. But in recent years it has faced some considerable challenges, namely to do with lawsuits and the legal battles it faces with respect to its talc products. And today it's a leaner company after having spun off its consumer health business.

But the market still appears concerned -- shares of Johnson & Johnson are down 8% in the past 12 months. What should investors do with the stock?

The business is still showing decent growth

On April 16, J&J reported its latest results, which demonstrated continued growth. Revenue of $21.4 billion for the first three months of the year represented a modest 2% increase from the same period last year. When excluding the impact of foreign currency, however, the operational growth rate was nearly 4%. Being a large global business unfortunately means that foreign currency can have a considerable impact on the business' numbers.

The healthcare giant slightly boosted its outlook for the year, however, projecting that sales from operations will grow 5.8% at the midpoint versus an earlier forecast of 5.5%. Steady, single-digit growth is what investors have come to expect from this mature business, and a 5% to 7% compound annual growth rate is what the company previously forecast for 2025 through to 2030, even as it works on innovating new products.

J&J just boosted its dividend for a 62nd straight year

One reason investors have come to love Johnson & Johnson stock is that the dividend it offers increases with regularity. This month the company announced yet another rate hike, raising its dividend payment by 4.2%. This marks the 62nd consecutive year where the Dividend King has increased its dividend. It is, however, a smaller increase than the 5.3% hike Johnson & Johnson announced last year.

The new quarterly dividend of $1.24 means that investors who buy the stock today will collect a yield of 3.3%, which is more than double the rate of the S&P 500 average -- 1.4%. And with a moderate payout ratio of 64%, there's still room for the dividend to go higher in the future.

Is Johnson & Johnson's stock cheap?

Johnson & Johnson's stock hasn't been doing terribly well, and it's currently trading at a multiple of 20 times its trailing earnings, which is well below the healthcare average of 32.

Based on the price-to-earnings-growth (PEG) ratio of 0.9, which factors in analysts' expectations of future growth over the next five years, the stock looks cheap. A PEG ratio of less than one is generally considered to be a good value buy. However, given that the company's legal problems haven't gone away and that there are still tens of thousands of lawsuits outstanding relating to talc, it can be difficult to project what the company's earnings might look like in the years ahead.

The stock certainly trades at a discount, but whether it's cheap enough to compensate investors for the risk involved is the big question.

Should you buy Johnson & Johnson stock today?

Johnson & Johnson's stock does look cheap relative to other healthcare stocks, and this could still be a good long-term buy. But for the time being investors may be better off waiting for the issues relating to the talc lawsuits to be resolved before buying the stock. Once that happens, there will be greater clarity around the legal costs and what any potential fallout may mean for the business in the long run.

With many other top healthcare stocks to choose from today, there just isn't a compelling reason to buy Johnson & Johnson's stock right now given the uncertainty the business faces.

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David Jagielski has no position in any of the stocks mentioned. The Motley Fool recommends Johnson & Johnson. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.