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!
Saturday's Featured Story Boring Is Beautiful: Why Johnson & Johnson Is Beating the Tech SectorReported by Jeffrey Neal Johnson. First 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)-related 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 attracted Wall Street 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 about 14%, significantly outpacing the broader market during a period of uncertainty. That price action suggests institutional money is rotating out of riskier assets and putting a premium on stability, predictable cash flow, and operational execution. For investors watching the ticker today, Feb. 24, 2026, note a specific calendar event: this is the ex-dividend date for Johnson & Johnson. The stock price will likely drop by the amount of the upcoming dividend, $1.30 per share — a mechanical market adjustment rather than a reflection of business performance. For income-focused investors, that technical dip often presents an attractive entry point rather than a signal to sell. 64 Years of Unbroken Growth The main case for holding Johnson & Johnson during turbulent markets 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 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 crises. That reliability is rare in a market often driven by speculative growth. The stock currently yields roughly 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 lies in its blend of growth and safety. Management projects free cash flow of about $21 billion in 2026, a level of cash generation that supports dividends, funds research, and helps manage legal expenses without heavy borrowing. For risk-averse investors, one compelling metric is the stock's Beta, which measures how a stock moves relative to the overall market (S&P 500). A Beta of 1.0 moves in step with the market; Johnson & Johnson currently has a Beta around 0.35, indicating it has been roughly 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 mixed portfolios. Beyond the Patent Cliff: The Road to $100 Billion Contrary to the idea that "safe" stocks cannot grow, Johnson & Johnson is executing a strategic pivot that is producing results. Management has guided for 2026 full-year revenue to surpass $100 billion for the first time in the company's history, and an adjusted EPS of about $11.53. This growth stems from a reinvigorated pharmaceutical division, now branded as Innovative Medicine. Investors once worried about the patent cliff for Stelara, a blockbuster immunology drug that lost exclusivity in 2025. Typically, such losses lead to steep revenue declines, but J&J has largely offset that drop with several emerging blockbuster products. Two key assets are driving the resilience: - Darzalex: An oncology leader generating about $14 billion in annual sales, Darzalex has become a foundational therapy for multiple myeloma worldwide.
- Tremfya: Seen as a successor to Stelara in certain indications, Tremfya recently reported strong three-year data showing improved remission rates in ulcerative colitis, helping J&J defend market share in immunology.
The Tech in MedTech: High-Margin Technologies The growth story extends beyond pharmaceuticals into MedTech. That division has shifted toward high-growth, high-margin technologies, notably through the integration of Shockwave Medical to modernize the cardiovascular portfolio. Shockwave's intravascular lithotripsy (IVL) uses sonic pressure waves to break up calcified plaque in arteries — conceptually similar to lithotripsy used for kidney stones. IVL is a substantial upgrade over traditional angioplasty balloons, and owning this technology gives Johnson & Johnson a high-growth asset that complements its other cardiovascular and surgical offerings. The company is also investing in robotics. Its submission of the Ottava robotic surgical system for FDA approval signals an intent to compete in the expanding soft-tissue robotics market. These devices tend to carry higher profit margins and foster long-term relationships with hospital systems, creating a durable earnings tail beyond basic supplies. 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. Originally planned as a spin-off, recent reports say the company is exploring a large-scale sale of the asset. Divesting orthopedics would be a classic addition-by-subtraction move. Orthopedics is a more mature, lower-growth business compared with booming fields like oncology and advanced cardiovascular technologies. Shedding that unit could boost overall revenue growth and margins, and a sale could generate a significant lump-sum cash infusion to fund acquisitions, share buybacks, or debt reduction. Legal risks remain part of the balanced case for Johnson & Johnson. The company continues to face litigation over talc products, including a recent $1.5 billion verdict that keeps the issue in the headlines. A commercial dispute with Bayer over prostate cancer marketing claims has added further noise. Still, the recent stock rally suggests the market is looking past the headlines. With more than $20 billion in cash and marketable securities, potential proceeds from an orthopedics transaction, and roughly $21 billion in projected free cash flow, J&J has the financial capacity to manage these liabilities without threatening its operations or dividend. For most investors, these legal matters appear to be balance-sheet items rather than existential threats. Capital Preservation With Upside Johnson & Johnson has evolved from a diversified conglomerate into a more focused, higher-tech healthcare company. After spinning off its consumer health division as Kenvue (NYSE: KVUE) and potentially divesting orthopedics, the company is concentrating on high-growth opportunities in pharmaceuticals and medical technology. Although the stock is trading near all-time highs and is no longer a deep-value play, it offers a compelling mix of capital preservation and upside. The combination of a 64-year dividend growth streak, low volatility, and a clear path to $100 billion in revenue makes Johnson & Johnson an attractive option for 2026. For investors tired of the unpredictability in tech, J&J demonstrates that, in the current market, boring can be both beautiful and profitable.
| 
