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Tuesday's Featured Story Boring Is Beautiful: Why J&J Is Beating The Tech SectorReported by Jeffrey Neal Johnson. Article Posted: 2/24/2026. While the technology sector faces a renewed wave of 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 challenges the perception of the healthcare giant as slow-moving and "boring." 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 operational execution. For investors watching the ticker today, February 24, 2026, it's important to note a specific calendar event: today is the ex-dividend date for Johnson & Johnson. That means the stock price will likely decline by roughly the amount of the upcoming dividend payment, $1.30 per share. This is 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 exit. 64 Years of Unbroken Growth I Called Black Monday. Now I'm Calling March 26!
I predicted the 1987 crash six weeks early. I called the fall of the Berlin Wall. I pinpointed the exact bottom in 2009.
Now I'm staking my reputation on March 26, 2026 - the day I believe Elon will announce the SpaceX IPO.
Bloomberg is calling it "the biggest listing of ALL TIME."
A $1.5 TRILLION valuation... the "wealth-building" moment of the decade.
Today, I'll show you how to get in before the big announcement. Click Here to See How to Secure Your "SpaceX Access Code" Key Points - The company 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.
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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—companies that have increased their dividend payout for at least 50 consecutive years. Johnson & Johnson has now raised its dividend for 64 consecutive years, a track record that spans multiple recessions, market dislocations, and geopolitical shocks. That reliability is a rare commodity in a market 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, the appeal here is the blend of growth and safety. The dividend is backed 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 manage legal expenses without heavy borrowing. For risk-averse investors, one compelling metric 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 a stock moves in lockstep with the market. Johnson & Johnson currently has a Beta of just 0.35, meaning it has historically been 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, damping overall volatility while preserving equity exposure. Beyond the Patent Cliff: The Road to $100 Billion A common misconception about "safe" stocks is that they cannot grow. Johnson & Johnson is contesting that idea with a strategic pivot that appears to be paying off. 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 revenue milestone, the company expects adjusted earnings per share (EPS) of roughly $11.53. This growth follows a reinvention of the pharmaceutical division, now branded Innovative Medicine. Investors had worried about the patent cliff for Stelara, a blockbuster immunology drug that lost exclusivity in 2025. Rather than suffering a collapse in revenue, J&J has offset the decline with the rapid rise of new blockbuster drugs. Two key assets are driving this resilience: - Darzalex: This oncology therapy is generating about $14 billion in annual sales, helping to cement the company's leadership in multiple myeloma treatment.
- Tremfya: Positioned as a successor in the immunology space, Tremfya recently reported strong three-year remission data for ulcerative colitis, supporting the company's ability to retain market share even as older drugs lose exclusivity.
The Tech in MedTech: High-Margin Technologies The growth story extends beyond pharmaceuticals into the MedTech division, which has shifted to higher-growth, higher-margin technologies. A notable example is the integration of Shockwave Medical, acquired to modernize the cardiovascular portfolio. Shockwave uses intravascular lithotripsy (IVL) technology—sonic pressure waves that break up calcified plaque in arteries, similar to kidney-stone treatments. It's a meaningful upgrade over traditional angioplasty balloons. By adding this capability, Johnson & Johnson has secured a high-growth asset that complements its heart pump and surgical businesses. The company is also advancing in surgical robotics. The submission of its Ottava robotic surgical system for FDA approval signals intent to compete in the expanding soft-tissue robotics market. These higher-tech devices typically carry stronger profit margins and create sticky relationships with hospital systems, providing a long-term earnings tailwind beyond basic consumables. 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 of the DePuy Synthes orthopedics business. Originally planned as a spin-off, the company is reportedly exploring a large sale of the asset. Divesting the orthopedics unit would be an example of addition by subtraction. Orthopedics is a mature, lower-growth business compared with the booming fields of oncology and cardiovascular technology. Shedding this slower unit could lift overall revenue growth and margins. A sale would also generate a lump-sum cash payment—potentially billions—providing capital for acquisitions, share buybacks, or other strategic uses. Legal risk remains a key part of any balanced view of Johnson & Johnson. The company continues to face litigation over talc products, including a recent $1.5 billion verdict. A new commercial lawsuit from Bayer over marketing claims for prostate cancer drugs has added to the headlines. Still, the recent rally suggests the market is looking past these stories. Bulls argue that Johnson & Johnson has the financial depth to manage these liabilities without disrupting its operations. With more than $20 billion in cash and marketable securities, the potential proceeds from an orthopedics sale, and roughly $21 billion in annual free cash flow, the company appears positioned to treat legal settlements as manageable balance-sheet items rather than existential threats to the dividend or the 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) and potentially the orthopedics unit, management is streamlining the business to concentrate on higher-growth opportunities in pharmaceuticals and medical technology. While the stock is no longer a bargain, trading near all-time highs, it offers a premium mix of capital preservation and upside that's 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 the unpredictability in the technology sector, Johnson & Johnson demonstrates that, in the current market environment, "boring" can be both beautiful and profitable.
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