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Today's Exclusive Article Boring Is Beautiful: Why Johnson & Johnson Is Beating the Tech SectorReported by Jeffrey Neal Johnson. Date 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 challenges the notion 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 money is rotating out of riskier assets and placing a premium on stability, predictable cash flow, and operational execution. For investors watching the ticker today, Feb. 24, 2026, note a specific calendar event: today is the ex-dividend date for Johnson & Johnson. This means the stock price will likely decline by approximately the upcoming dividend amount, $1.30 per share. It's a mechanical adjustment to the stock price—not a reflection of business performance—and for income-focused investors that 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 immense financial stability and its 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 crashes, and geopolitical conflicts. That reliability is a rare commodity in a market fixated on speculative growth. The stock yields roughly 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 mix of income and safety. Management projects free cash flow of about $21 billion in 2026, a level of cash generation that helps ensure the company can continue paying shareholders, invest in research, and manage 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 relative 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, 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 acts 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 cannot 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 the company's history. Along with that milestone, the company anticipates adjusted earnings per share (EPS) of about $11.53. This growth is driven by a reinvention of its pharmaceutical division, now branded as Innovative Medicine. For years, investors worried about the patent cliff facing Stelara, a blockbuster immunology drug that lost exclusivity in 2025. Typically, when a top drug faces generic competition, revenue falls sharply. However, J&J has absorbed that decline through the rapid rise of new blockbusters. Two key assets are driving this resilience: - Darzalex: This oncology powerhouse generates roughly $14 billion in annual sales. It has cemented the company's leadership in treating multiple myeloma and become a foundational therapy in oncology wards worldwide.
- Tremfya: Positioned as a successor to Stelara, Tremfya recently released strong three-year remission data for ulcerative colitis. That clinical success is important because it shows 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 toward high-growth, higher-margin technologies. A prime example is the integration of Shockwave Medical, acquired to modernize the cardiovascular portfolio. Shockwave uses intravascular lithotripsy (IVL) technology, which applies sonic pressure waves to safely break up calcified plaque in arteries—similar to how kidney stones are treated. This is a significant 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. Additionally, the company is making strides 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 carry higher profit margins and create sticky relationships with hospital systems, providing a long-term earnings tailwind that goes beyond selling basic surgical tools. Addition by Subtraction: The Orthopedics Strategy To maintain its growth trajectory 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 possible mega sale of the asset. Divesting the orthopedics unit would be a classic example of an addition-by-subtraction strategy. 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 significant lump-sum cash payment—potentially billions of dollars—providing capital for acquisitions or share buybacks. Addressing legal risks is essential for a balanced analysis of Johnson & Johnson. The company continues to face litigation over talc products, with a recent $1.5 billion verdict keeping the issue in the headlines. A separate 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. The prevailing view among bulls is that Johnson & Johnson has the financial depth to manage these liabilities without disrupting its business. With over $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 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 shedding its consumer health division (Kenvue (NYSE: KVUE)) and potentially divesting orthopedics, 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 premium 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 exhausted by the unpredictability of the technology sector, Johnson & Johnson shows that, in the current market environment, boring can be both beautiful and profitable.
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