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This Week's Bonus Article 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 grapples with renewed volatility driven by artificial intelligence (AI) excitement and valuation concerns, a different story is unfolding in the healthcare sector. Investors leaving 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. The 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 on Feb. 24, 2026, note an important calendar event: today is the ex-dividend date for Johnson & Johnson. That means the stock price will likely fall by the amount of the upcoming dividend, $1.30 per share — a mechanical adjustment rather than a reflection of business deterioration. 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 main case for holding Johnson & Johnson during turbulent markets is its financial stability and its role as a portfolio stabilizer. The company is a member of the elite group of Dividend Kings, firms that have increased their dividend for at least 50 consecutive years. Johnson & Johnson has raised its dividend for 64 consecutive years, a record spanning multiple recessions, market crashes, and geopolitical shocks. That consistency is rare in a market often focused on speculative growth. The stock currently 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 combination of growth and safety. Management projects free cash flow of roughly $21 billion in 2026, providing a large liquidity cushion to support dividends, fund R&D, and cover legal expenses without significant borrowing. For risk-averse investors, one compelling metric is the stock's beta. Beta measures a stock's sensitivity to the broader market (S&P 500). A beta of 1.0 moves in lockstep with the market; Johnson & Johnson's beta is about 0.35, meaning the stock has historically been roughly 65% less volatile than the market. When tech stocks swing, J&J tends to hold its ground. Adding JNJ to a technology-heavy portfolio can dampen overall volatility while maintaining equity exposure. Beyond the Patent Cliff: The Road to $100 Billion Safe stocks are often assumed to lack growth, but Johnson & Johnson is pushing back with a strategic pivot. Management expects 2026 full-year revenue to cross the $100 billion mark for the first time in the company's history, with adjusted earnings per share projected around $11.53. This growth is driven by the reinvention of its pharmaceutical division, now branded Innovative Medicine. Investors worried about the patent cliff for Stelara — which lost exclusivity in 2025 — have watched J&J offset that decline with the rise of new blockbusters. Two key assets are driving this resilience: - Darzalex: An oncology powerhouse generating roughly $14 billion in annual sales, Darzalex has helped establish leadership in multiple myeloma treatment.
- Tremfya: Positioned as a successor to Stelara, Tremfya recently reported strong three-year remission data for ulcerative colitis, evidence that J&J can retain market share in the competitive immunology space.
The Tech in MedTech: High-Margin Technologies Growth also comes from the MedTech division, which has been refocused on higher-growth, higher-margin technologies. A notable example is the integration of Shockwave Medical, acquired to modernize J&J's cardiovascular portfolio. Shockwave uses intravascular lithotripsy (IVL): sonic pressure waves to break up calcified plaque in arteries, similar to how kidney stones are treated. This is a significant advancement over traditional angioplasty balloons. Owning IVL technology gives Johnson & Johnson a high-growth asset that complements its existing heart pump 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 expanding soft-tissue robotics market. These high-tech devices carry higher profit margins and create sticky relationships with hospital systems, providing a durable earnings tailwind beyond commodity medical supplies. Addition by Subtraction: The Orthopedics Strategy To boost growth and margins, management is reshaping the company. A major development is the possible separation or sale of the DePuy Synthes orthopedics business. While originally planned as a spin-off, recent reports suggest the company is exploring a large-scale sale. Divesting the orthopedics unit is an example of an addition-by-subtraction strategy. Orthopedics is a mature, slower-growth business compared with the fast-growing areas of oncology and cardiovascular technologies. Shedding the unit could lift overall revenue growth and margins, and a sale would likely produce a sizable cash infusion to fund acquisitions or share repurchases. Legal risks remain a factor. The company faces litigation over talc products, with a recent $1.5 billion verdict keeping the matter in the headlines. A commercial dispute with Bayer over prostate cancer drug marketing claims has also added noise. Still, the market's recent rally implies investors are looking past these headlines. Many bulls believe Johnson & Johnson has the financial capacity to manage these liabilities: the company holds more than $20 billion in cash and marketable securities, projects $21 billion in annual free cash flow, and could receive substantial proceeds from an orthopedics sale. That financial strength helps keep legal costs as balance-sheet items rather than existential threats to the dividend or operations. Capital Preservation With Upside Johnson & Johnson has evolved from a broad-based conglomerate into a more focused, high-tech healthcare company. After shedding its consumer health division (Kenvue (NYSE: KVUE)) and potentially divesting orthopedics, the company is concentrating on pharmaceuticals and medical technology. Although the stock trades near all-time highs and is no longer a bargain, it offers a rare mix of capital preservation and growth. 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 an attractive option for 2026. For investors tired of tech's unpredictability, Johnson & Johnson demonstrates that, in the current market, boring can be both beautiful and profitable.
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