Thanks for signing up for DividendStocks.com! It's the daily newsletter built for dividend and income investors. Before we can begin sending your daily updates, there’s one quick step left. Please confirm your subscription using the link below so our emails reach your inbox. Click Here to Confirm Your Subscription to DividendStocks.com Here’s a small glimpse of what you’ll get access to: Dividend Stock Ideas — Each newsletter features dividend stocks with high yields, sustainable payouts, and strong growth potential. Ex-Dividend Stocks — Want to capture upcoming dividend payouts? Find out which stocks are going ex-dividend this week. Market News and Events — Stay in the loop on the latest developments impacting popular dividend names like AT&T, Exxon Mobil, IBM, Procter & Gamble, and Verizon. Bonus: As a thank-you for confirming, you’ll also receive a free PDF copy of Automatic Income, our popular guide to building wealth through dividend investing. Let’s get your dividend journey started! Discover Top Income-Generating Stocks Here See you in your inbox soon,
The DividendStocks.com Team P.S. Don’t miss out click here to verify your subscription and secure your daily dividend insights and your free investing guide!
Additional Reading from MarketBeat.com Boring Is Beautiful: Why Johnson & Johnson Is Beating the Tech SectorReported 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 common 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 solid execution. For investors watching the ticker today, Feb. 24, 2026, it's important to note a specific calendar event: today is the ex-dividend date for Johnson & Johnson. The stock price will likely adjust downward by the size of the upcoming dividend, $1.30 per share. That is a mechanical market movement, not a reflection of business performance. For income-focused investors, this technical dip often represents an attractive entry point rather than a signal to exit. 64 Years of Unbroken Growth The primary argument for holding Johnson & Johnson during turbulent market cycles is its financial stability and role as a portfolio stabilizer. 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 record that spans multiple recessions, market crashes, and geopolitical shocks. That reliability is a rare commodity in a market focused on speculative growth. The stock yields approximately 2.12%, based on an annual payout of $5.20 per share. While higher yields can be found in the bond market or riskier sectors, J&J's appeal lies in the combination of yield, growth, and safety. Management projects free cash flow of roughly $21 billion in 2026, providing a substantial cushion to continue paying shareholders, invest in research, and manage legal expenses without heavy borrowing. For risk-averse investors, the most compelling metric may be 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 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, acting as a mathematical shock absorber in a tech-heavy portfolio while still providing equity exposure. Beyond the Patent Cliff: The Road to $100 Billion A common misconception about safe, dividend-paying stocks is that they don't grow. Johnson & Johnson is disproving that with a strategic pivot that appears to be paying off. Management has issued strong guidance for 2026, projecting full-year revenue to cross the $100 billion threshold for the first time in company history. Alongside that, the company anticipates an adjusted earnings per share (EPS) of about $11.53. This growth is driven by a successful reinvention of its pharmaceutical division, now branded as Innovative Medicine. Investors worried about the patent cliff for Stelara, a once-blockbuster immunology drug that lost exclusivity in 2025, have seen those concerns mitigated by the strong performance of newer drugs. Two key assets are driving this resilience: - Darzalex: This oncology therapy is generating roughly $14 billion in annual sales and has helped cement J&J's leadership in treating multiple myeloma.
- Tremfya: Positioned as a successor to Stelara, Tremfya recently produced strong three-year remission data for ulcerative colitis, supporting the company's ability to retain market share in the competitive immunology space.
The Tech in MedTech: High-Margin Technologies The growth story extends beyond pharmaceuticals into the MedTech (medical technology) division, which has shifted its focus to 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) uses sonic pressure waves to safely break up calcified plaque in arteries—similar to how kidney stones are treated. This is a significant improvement over traditional angioplasty balloons and gives J&J a high-growth asset that complements its existing cardiovascular and surgical businesses. The company is also advancing in robotics. The submission of its Ottava robotic surgical system for FDA approval signals an intention to compete in the growing soft-tissue robotics market. These high-tech devices carry higher profit margins and create sticky relationships with hospital systems, providing a long-term earnings tailwind beyond basic consumables or surgical tools. Addition by Subtraction: The Orthopedics Strategy To maintain 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 the unit was once considered for a spin-off, recent reports indicate the company is exploring a possible mega sale. Divesting orthopedics would be an example of addition by subtraction. Orthopedics is a mature, lower-growth business compared with booming fields like oncology and advanced cardiovascular technologies. Shedding that slower unit would improve J&J's overall revenue growth rate and profit margins. A sale could also generate a sizable lump-sum payment, potentially providing additional capital for strategic acquisitions or share buybacks. Addressing legal risks is essential for a balanced view. 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 regarding 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. Many bulls believe 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 appears capable of absorbing legal settlements. That financial strength makes these legal battles a balance-sheet item rather than an existential threat to the dividend or core business. Capital Preservation With Upside Johnson & Johnson has evolved from a slow-moving conglomerate into a more focused, higher-tech healthcare company. By shedding its consumer health division (Kenvue (NYSE: KVUE)) and potentially divesting orthopedics, the company is streamlining to concentrate on high-growth opportunities in pharmaceuticals and medical technology. Although the stock is no longer a deep-value play—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 demonstrates that, in the current market environment, boring can be both beautiful and profitable.
| 
