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Today's Bonus News Boring Is Beautiful: Why Johnson & Johnson Is Beating the Tech SectorAuthored by Jeffrey Neal Johnson. Posted: 2/24/2026. 
Key Points - Johnson & Johnson has maintained an impressive streak of increasing its dividend payouts for generations, rewarding long-term shareholders with reliable income.
- Management is driving future expansion by focusing on high-growth pharmaceutical assets and cutting-edge medical technologies, such as robotics.
- Investors looking for shelter from market volatility benefit from a stock that historically moves much less than the broader market indices.
- Special Report: [Sponsorship-Ad-6-Format3]
While the technology sector faces renewed volatility driven by speculative AI-driven trading and valuation concerns, a different story is unfolding in the healthcare sector. Investors fleeing the jittery price swings of high-growth tech stocks are finding shelter in a familiar name that is quietly outperforming. Johnson & Johnson (NYSE: JNJ) is trading near all-time highs of roughly $245 per share, creating a divergence that has caught Wall Street's attention. This rally runs counter to the perception of the healthcare giant as a slow-moving, "boring" stock. Over the last 30 days, shares have climbed about 14%, significantly outperforming the broader market during a period of uncertainty. That price action suggests institutional money is rotating out of riskier assets and placing a premium on stability, reliable cash flow, and strong execution. For investors watching the ticker today, Feb. 24, 2026, note that it is the ex-dividend date for Johnson & Johnson. The stock price will likely drop by roughly the amount of the upcoming dividend payment—$1.30 per share—which is a mechanical adjustment rather than a signal of deteriorating business performance. For income-focused investors, this technical dip often represents an attractive entry point rather than a cue to sell. 64 Years of Unbroken Growth The primary case for holding Johnson & Johnson during turbulent markets centers on its financial stability and role as a portfolio stabilizer. The company belongs to an elite group of equities known as Dividend Kings—companies that have increased their dividend for at least 50 consecutive years. Johnson & Johnson has raised its dividend for 64 consecutive years, a track record that spans multiple recessions, market crashes, and geopolitical shocks. That reliability is rare in a market often focused on speculative growth. Currently, the stock yields about 2.12%, based on an annual payout of $5.20 per share. While higher yields exist elsewhere, the appeal here is the combination of growth and safety. The dividend is supported by a large liquidity cushion: management projects free cash flow of roughly $21 billion in 2026. That level of cash generation helps ensure the company can continue to pay shareholders, invest in R&D, and cover legal expenses without heavy borrowing. For risk-averse investors, one of the most compelling metrics is the stock's Beta. Beta measures how much a stock moves compared to the overall market (S&P 500). A Beta of 1.0 means the stock moves in line with the market. Johnson & Johnson currently has a Beta of just 0.35, historically making it about 65% less volatile than the broader market. When tech stocks swing wildly, J&J tends to hold its ground. Adding JNJ to a portfolio concentrated in technology acts as a mathematical shock absorber, dampening overall volatility while maintaining equity exposure. Beyond the Patent Cliff: The Road to $100 Billion A common misconception is that "safe" stocks do not grow. Johnson & Johnson is disproving that notion with a strategic pivot that appears to be working. Management has issued strong guidance for 2026, projecting full-year revenue to top $100 billion for the first time in the company's history. Alongside that milestone, the company expects adjusted earnings per share (EPS) of approximately $11.53. This growth is being driven by a reinvigorated pharmaceutical division, now branded as Innovative Medicine. Investors had feared a revenue hit after Stelara, a blockbuster immunology drug, lost exclusivity in 2025. Typically, such losses lead to steep declines, but J&J has offset that impact with the rapid ascent of new blockbusters. Two key assets are driving this resilience: - Darzalex: This oncology powerhouse generates roughly $14 billion in annual sales and has cemented J&J's leadership in multiple myeloma, becoming a cornerstone therapy in oncology worldwide.
- Tremfya: Positioned as a successor to Stelara, Tremfya recently released strong three-year remission data for ulcerative colitis, demonstrating the company can retain market share in the competitive immunology space as older drugs fade.
The Tech in MedTech: High-Margin Technologies The growth story extends beyond pharmaceuticals into the MedTech segment, which has refocused on high-growth, high-margin technologies. A notable example is the integration of Shockwave Medical, acquired to modernize the cardiovascular portfolio. Shockwave's intravascular lithotripsy (IVL) technology uses sonic pressure waves to break up calcified plaque in arteries—an approach similar to treating kidney stones and a major upgrade over standard angioplasty balloons. Owning this technology gives Johnson & Johnson a high-growth asset that complements its heart pump (Abiomed) and surgical businesses. J&J is also advancing in robotics. The submission of its Ottava robotic surgical system for FDA approval signals an intent to compete directly in the expanding soft-tissue robotics market. These high-tech devices carry higher profit margins and create durable relationships with hospital systems, providing a long-term earnings tailwind beyond basic surgical supplies. Addition by Subtraction: The Orthopedics Strategy To sustain growth and improve margins, management is reshaping the corporate structure. One major development is the possible separation or sale of the DePuy Synthes orthopedics business. While originally planned as a spin-off, recent reports indicate the company is exploring a mega-sale of the asset. Divesting the orthopedics unit is an example of addition by subtraction. Orthopedics is a mature, lower-growth business compared with booming fields like oncology and cardiovascular devices. Shedding this slower unit would improve overall revenue growth and profit margins. A sale would also generate a sizeable lump-sum payment—potentially billions—providing capital for acquisitions, R&D, or share buybacks. Legal risks remain an important consideration. The company continues to face litigation over talc products, with a recent $1.5 billion verdict keeping the issue in the headlines. A new commercial lawsuit from Bayer over marketing claims for prostate cancer drugs has also added noise to the news cycle. Still, the stock's recent rally suggests the market is looking past these headlines. Bulls argue that Johnson & Johnson has the financial depth to manage these liabilities without disrupting operations. With more than $20 billion in cash and marketable securities, potential proceeds from an orthopedics sale, and roughly $21 billion in annual free cash flow, the company has a financial cushion capable of absorbing legal settlements. That strength keeps legal battles as balance-sheet items rather than existential threats to the dividend or business. Capital Preservation With Upside Johnson & Johnson has evolved from a slow-moving conglomerate into a more focused, high-tech healthcare company. After shedding its consumer health division (Kenvue (NYSE: KVUE)) and potentially exiting orthopedics, the company is concentrating on high-growth opportunities in pharmaceuticals and medical technology. While the stock is no longer a deep-value bargain—trading near all-time highs—it offers a compelling mix of capital preservation and upside. The combination of a 64-year dividend growth streak, a very low volatility profile, and a clear path to $100 billion in revenue makes J&J an attractive option for 2026. For investors tired of the technology sector's unpredictability, Johnson & Johnson shows that, in the current market environment, boring can be both beautiful and profitable.
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