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This Week's Bonus Content Boring Is Beautiful: Why Johnson & Johnson Is Beating the Tech SectorAuthor: Jeffrey Neal Johnson. Originally 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 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 last 30 days, shares have climbed roughly 14%, significantly outperforming the broader market during a period of uncertainty. The price action suggests institutional money is rotating out of higher-risk assets and placing a premium on stability, reliable cash flow, and consistent execution. Silver: 20% + 68%
Tim Plaehn just found a Silver ETF that delivers monthly income (up to 20% in annual distributions) plus share appreciation (68% in 5 months). The precious metal has become one of the best investments for growth AND income right now. Click here and start to collect in the next 30 days. On Feb. 24, 2026, investors should note a specific calendar event: this is the ex-dividend date for Johnson & Johnson. The stock price will likely drop by the upcoming dividend amount—$1.30 per share—due to the mechanical adjustment associated with the ex-date. That dip reflects technical timing rather than underlying business weakness, and for income-focused investors it often represents an attractive entry point. 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—companies that have increased their dividend 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. That consistency is a rare commodity in a market still captivated by speculative growth stories. The stock yields about 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 blend of growth and safety. Management projects free cash flow of roughly $21 billion in 2026. That level of cash generation helps protect the dividend, fund R&D, and cover legal expenses without heavy borrowing. For risk-averse investors, another persuasive metric is the stock's Beta. Beta measures how much a stock moves relative to the overall market (S&P 500). With a Beta of just 0.35, J&J 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 tech-heavy portfolio can act as a mathematical shock absorber, dampening overall volatility while maintaining equity exposure. Beyond the Patent Cliff: The Road to $100 Billion A common misconception about so-called safe stocks is that they cannot grow. Johnson & Johnson is disproving that with a strategic pivot that is paying off. Management issued strong guidance for 2026, projecting full-year revenue to surpass the $100 billion threshold for the first time in company history. Alongside that milestone, the company anticipates adjusted earnings per share (EPS) of roughly $11.53. That growth stems from the reinvention of its pharmaceutical division, now branded as Innovative Medicine. Investors had been worried about the patent cliff after Stelara lost exclusivity in 2025, which typically leads to significant revenue declines. J&J, however, has largely offset that loss with the rise of new blockbusters. Two key assets are driving this resilience: - Darzalex: This oncology powerhouse generates approximately $14 billion in annual sales and has solidified J&J's leadership in multiple myeloma treatment.
- Tremfya: Positioned as a successor to Stelara, Tremfya recently reported strong three-year remission data for ulcerative colitis, supporting the company's ability to retain market share in immunology despite older drugs fading.
The Tech in MedTech: High-Margin Technologies The growth story extends beyond pharmaceuticals into MedTech. That segment has been refocused toward high-growth, high-margin technologies, exemplified by the integration of Shockwave Medical to modernize the cardiovascular portfolio. Shockwave uses intravascular lithotripsy (IVL) technology—sonic pressure waves that safely break up calcified plaque in arteries, similar to kidney stone treatment. This is a meaningful upgrade over traditional angioplasty balloons. Owning that technology gives J&J a high-growth asset that complements its heart pump (Abiomed) and surgical businesses. J&J is also advancing robotics. The submission of its Ottava robotic surgical system for FDA approval signals an intent to compete in the expanding soft-tissue robotics market. These devices generally carry higher profit margins and foster sticky relationships with hospital systems, creating a durable earnings tailwind beyond basic consumables. Addition by Subtraction: The Orthopedics Strategy To sustain growth and improve margins, management is reshaping the corporate structure. A notable 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 major sale. Divesting the orthopedics unit is an example of addition by subtraction. Orthopedics is a mature, lower-growth business compared with booming fields like oncology and cardiovascular devices. Shedding that slower unit could boost overall revenue growth and margins, and a sale would generate a significant lump-sum payment—potentially billions—providing capital for acquisitions or share buybacks. Legal risks remain relevant to any balanced view of Johnson & Johnson. The company continues to face litigation over talc products, including a recent $1.5 billion verdict, and a new commercial lawsuit from Bayer over marketing claims for prostate cancer drugs has added extra noise. Still, the market appears to be looking past those headlines. Bulls argue J&J has the financial depth to manage liabilities without disrupting operations. With over $20 billion in cash and marketable securities, potential proceeds from an orthopedics sale, and roughly $21 billion in projected annual free cash flow, the company has a financial cushion that makes legal settlements a balance-sheet item rather than an existential threat to the dividend or business. Capital Preservation With Upside Johnson & Johnson has evolved from a slow-moving conglomerate into a more focused, high-tech healthcare company. After shedding its consumer health division (Kenvue (NYSE: KVUE)) and potentially divesting orthopedics, management is concentrating on higher-growth opportunities in pharmaceuticals and medical technology. Although the stock is no longer a bargain—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 low volatility profile, and a clear path to $100 billion in revenue makes J&J a noteworthy option for 2026. For investors weary of the unpredictability in tech, Johnson & Johnson demonstrates that, in the current market, boring can be both beautiful and profitable.
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