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Saturday's Exclusive News Boring Is Beautiful: Why Johnson & Johnson Is Beating the Tech SectorWritten by Jeffrey Neal Johnson. Article 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 artificial intelligence (AI) scare trades 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 past 30 days, shares have climbed about 14%, significantly outperforming the broader market during a period of uncertainty. That price action suggests institutional investors are rotating out of riskier assets and placing a premium on stability, reliable cash flow, and operational execution. For investors watching the ticker on Feb. 24, 2026, note an important calendar event: today is the ex-dividend date for Johnson & Johnson. The stock price will likely decline by the upcoming dividend amount, $1.30 per share, as a mechanical market adjustment — not a reflection of business performance. For income-focused investors, this technical dip often represents an attractive entry point rather than a signal to sell. 64 Years of Unbroken Growth The primary argument for holding Johnson & Johnson during turbulent market cycles is its financial stability and portfolio-stabilizing role. The company belongs to an elite group of equities known as Dividend Kings — firms that have increased their dividend payout 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 conflicts. This reliability is rare in a market often fixated on speculative growth. The stock currently yields about 2.12%, based on an annual payout of $5.20 per share. While higher yields can be found in bonds or riskier sectors, J&J's appeal is the combination of growth and safety. The dividend is supported by a substantial liquidity cushion: management projects free cash flow of roughly $21 billion in 2026. That level of cash generation helps ensure the company can continue paying shareholders, investing in research, and managing 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 with the overall market (S&P 500). A beta of 1.0 means a stock moves in lockstep with the market. Johnson & Johnson currently has a beta of just 0.35 — historically 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 heavy in technology can act as a mathematical shock absorber, dampening overall volatility while still providing equity exposure. Beyond the Patent Cliff: The Road to $100 Billion A common misconception about safe stocks is that they do not grow. Johnson & Johnson is disproving that with a strategic pivot that is paying off. Management has issued strong guidance for 2026, projecting full-year revenue to surpass the $100 billion threshold for the first time in the company's history, with adjusted earnings per share (EPS) of roughly $11.53. This growth is driven by a successful reinvention of its pharmaceutical division, now branded as Innovative Medicine. Investors had long worried about the patent cliff after Stelara, a blockbuster immunology drug, lost exclusivity in 2025. Typically, when a top drug faces generic competition, revenue collapses. J&J has largely absorbed that decline through the rapid rise of new blockbusters. Two key assets are driving this resilience: - Darzalex: This oncology powerhouse generates about $14 billion in annual sales and has cemented the company's leadership in treating multiple myeloma.
- Tremfya: Positioned as a successor to Stelara, Tremfya recently posted strong three-year remission data for ulcerative colitis, evidence the company can retain market share in the competitive immunology space even as older drugs fade.
The Tech in MedTech: High-Margin Technologies The growth story extends beyond pharmaceuticals into the MedTech (medical technology) division, which has shifted focus toward high-growth, high-margin technologies. A notable example is the integration of Shockwave Medical to modernize the cardiovascular portfolio. Shockwave's intravascular lithotripsy (IVL) technology uses sonic pressure waves to safely break up calcified plaque in arteries, much like how kidney stones are treated. This is a major upgrade over traditional angioplasty balloons. By owning this technology, Johnson & Johnson has secured a high-growth asset that complements its existing cardiovascular 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 in the rapidly expanding soft-tissue robotics market. These high-tech devices typically command higher profit margins and create sticky relationships with hospital systems, providing a long-term earnings tailwind beyond commodity medical supplies. Addition by Subtraction: The Orthopedics Strategy To sustain growth and improve margins, management is reshaping the corporate structure. A major development is the potential 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 would be an example of an addition-by-subtraction strategy. Orthopedics is a mature, lower-growth business compared with booming fields like oncology and advanced cardiovascular devices. Shedding this slower unit would improve overall revenue growth and profit margins. A sale could also generate a significant lump-sum cash payment — potentially billions of dollars — providing capital for acquisitions or share buybacks. No balanced analysis of Johnson & Johnson is complete without addressing legal risks. The company continues to face litigation over talc products, with a recent $1.5 billion verdict keeping the issue in the headlines. Additionally, a commercial dispute with Bayer over prostate cancer drug marketing claims has added noise to the news cycle. However, 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 its business. With roughly $20+ billion in cash and marketable securities, potential proceeds from an orthopedics sale, and about $21 billion in projected free cash flow, the company has a financial fortress capable of absorbing legal settlements. That strength makes the legal battles a line item on the balance sheet rather than an existential threat to the dividend or operations. Capital Preservation With Upside Johnson & Johnson has evolved from a slow-moving conglomerate into a more focused, high-tech healthcare company. By separating its consumer health division (Kenvue (NYSE: KVUE)) and potentially divesting its orthopedics unit, the company is streamlining operations to concentrate on high-growth opportunities in pharmaceuticals and medical technology. While the stock is no longer a bargain, trading near all-time highs, it offers a blend of capital preservation and growth that is hard to find elsewhere. The combination of a 64-year dividend growth streak, a remarkably low volatility profile, and a clear path to $100 billion in revenue makes it a compelling option for 2026. For investors tired of technology's unpredictability, Johnson & Johnson demonstrates that, in the current market environment, boring can be both beautiful and profitable.
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