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Further Reading from MarketBeat Boring Is Beautiful: Why Johnson & Johnson Is Beating the Tech SectorReported by Jeffrey Neal Johnson. Article Published: 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 is again experiencing volatility driven by artificial intelligence (AI) scare trades and valuation concerns, a different narrative is unfolding in the healthcare sector. Investors stepping away from the erratic price swings of high-growth tech names are finding shelter in a familiar equity 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 risen about 14%, significantly outpacing the broader market amid uncertainty. That price action suggests institutional money is rotating out of riskier assets and valuing stability, reliable cash flow, and disciplined execution. For investors watching the ticker on Feb. 24, 2026, note one calendar event: today is the ex-dividend date for Johnson & Johnson. The stock will likely drop by the amount of the upcoming dividend, $1.30 per share — a mechanical adjustment rather than a comment on business performance. For income-focused investors, that technical dip often presents an attractive entry point rather than a reason to sell. 64 Years of Unbroken Growth The main reason many investors hold Johnson & Johnson through turbulent markets is its financial stability and role as a portfolio stabilizer. The company is part of an elite group known as Dividend Kings, firms that have raised their dividend for at least 50 consecutive years. Johnson & Johnson has raised its dividend for 64 consecutive years, a track record that spans recessions, market crashes, and geopolitical shocks. That reliability is increasingly valuable in a market focused on speculative growth. The stock yields roughly 2.12% based on an annual payout of $5.20 per share. While higher yields exist in bonds or riskier sectors, J&J's appeal is the combination of steady income and safety. Management expects free cash flow to reach about $21 billion in 2026, a cushion that supports dividend payments, R&D investment, and legal costs without heavy borrowing. For risk-averse investors, the stock's Beta is compelling. Beta measures how much a stock typically moves relative to the S&P 500. A Beta of 1.0 moves in lockstep with the market; Johnson & Johnson's Beta is only 0.35, meaning it has historically been about 65% less volatile than the broader market. When tech names swing wildly, J&J tends to hold its ground, acting like a shock absorber in equity-heavy portfolios. Beyond the Patent Cliff: The Road to $100 Billion Safe stocks aren't synonymous with stagnation. Johnson & Johnson is disproving that notion with a strategic pivot that appears to be working. Management has guided that full-year revenue should exceed $100 billion for the first time in the company's history in 2026, alongside adjusted earnings per share of roughly $11.53. That growth stems from a reinvigorated pharmaceutical division, now branded Innovative Medicine. Investors had worried about a patent cliff after Stelara, a blockbuster immunology drug, lost exclusivity in 2025. Instead of a revenue collapse, J&J has offset declines with the rapid ascent of new blockbusters. Two key assets are driving that resilience: - Darzalex: This oncology staple generates about $14 billion in annual sales and has become a foundation therapy in the treatment of multiple myeloma worldwide.
- Tremfya: Positioned as a successor to Stelara, Tremfya recently reported strong three-year remission data for ulcerative colitis, helping J&J retain market share in a competitive immunology landscape.
The Tech in MedTech: High-Margin Technologies The growth story also extends into MedTech. That division has shifted its mix toward high-growth, high-margin technologies. A notable example is the integration of Shockwave Medical, which modernized the cardiovascular portfolio. Shockwave's intravascular lithotripsy (IVL) uses sonic pressure waves to break up calcified plaque in arteries, analogous to kidney-stone treatment — a meaningful upgrade over traditional angioplasty balloons. Owning this technology gives Johnson & Johnson a high-growth asset that complements its existing heart pump (Abiomed) and surgical businesses. Meanwhile, the submission of the Ottava robotic surgical system for FDA approval signals J&J's push into soft-tissue robotics. These higher-tech devices offer stronger profit margins and forge durable relationships with hospital systems, creating a long-term earnings tailwind beyond consumables. Addition by Subtraction: The Orthopedics Strategy To sustain growth and improve margins, management is reshaping the corporate footprint. A major development is the potential separation of the DePuy Synthes orthopedics business. Initially planned as a spin-off, recent reports suggest the company may pursue a large sale instead. Divesting orthopedics exemplifies an addition-by-subtraction strategy. Orthopedics is a mature, lower-growth business compared with booming areas like oncology and advanced cardiac devices. Shedding that unit would improve overall revenue growth and profit margins, and a sale could generate a significant one-time cash infusion for acquisitions or buybacks. Legal risk remains a factor. J&J continues to face talc-related litigation — including a recent $1.5 billion verdict — and a new commercial lawsuit from Bayer over prostate-cancer drug marketing claims has added noise. Still, the market's recent rally indicates investors are largely looking past the headlines. With more than $20 billion in cash and marketable securities, potential proceeds from an orthopedics transaction, and roughly $21 billion in annual free cash flow, J&J has the financial resources to manage liabilities without threatening its dividend or core operations. Capital Preservation With Upside Johnson & Johnson has evolved from a diversified conglomerate into a more focused, higher-tech healthcare company. By spinning off its consumer health division (Kenvue (NYSE: KVUE)) and potentially divesting orthopedics, the firm is concentrating on higher-growth opportunities in pharmaceuticals and MedTech. Although J&J is no longer a value bargain, trading near record highs, it offers a rare mix of capital preservation and upside. A 64-year dividend growth streak, a low-volatility profile, and a clear path toward $100 billion in revenue make it an attractive option for 2026. For investors fatigued by the unpredictability of the technology sector, Johnson & Johnson demonstrates that, in the current market, boring can be both beautiful and profitable.
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