For those of you who are rationally approaching your investments, this latest correction is just one of the many that happen along the road to long-term capital appreciation, consistent dividends and letting the power of compounding nurture your wealth, explains Jim Woods, editor of Intelligence Report.

It’s also a time where, if you have money to put to work, now is a great time to add the best, most stalwart dividend payers at a significant discount from where they were just two months ago.

One such stalwart stock is health care giant Johnson & Johnson (JNJ). The shares recently sank after a Reuters story claimed that the company knew for decades that its baby powder contained asbestos. The report was apparently based on a review of documents and depositions from past trial testimony.

The story claims that from 1971 to the early 2000s, company executives were aware the company’s raw talc and finished powders sometimes tested positive for small amounts of asbestos. Moreover, the story claims that the the firm's higher-ups concealed this information from both regulators and the public.

Johnson & Johnson forcefully refuted the Reuters claims in a statement released that same day, calling the article “one-sided, false and inflammatory.” But the response went further, saying, “Simply put, the Reuters story is an absurd conspiracy theory… Johnson & Johnson’s baby powder is safe and asbestos free…”

I suppose the truth will come out at some point, and we’ll have to make a definitive judgment about that truth with respect to the attractiveness of the stock going forward.

Yet what I think we can confidently say today is that the 10% one-day selling was a gross overreaction, and that makes the stock especially attractive here for investors with a long-term perspective.

If you own the stock already, continue owning it. And if you don’t own it, now is the time to get some, as the latest headline selling is a prime opportunity to own the stock at a discount.

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