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More Reading from MarketBeat Boring Is Beautiful: Why Johnson & Johnson Is Beating the Tech SectorBy Jeffrey Neal Johnson. 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 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 defies the common perception of the healthcare giant as a slow-moving, boring stock. 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 execution. On Feb. 24, 2026, investors should also note a specific calendar event: this is the ex-dividend date for Johnson & Johnson. The stock will likely decline roughly by the upcoming dividend amount, $1.30 per share — a mechanical adjustment rather than a comment on underlying business performance. For income-focused investors, that technical dip can be an attractive entry point rather than a signal to sell. 64 Years of Unbroken Growth The main case for owning Johnson & Johnson in turbulent markets centers on its financial stability and role as a portfolio stabilizer. The company is part of an elite group known as Dividend Kings — firms that have raised their dividend for at least 50 consecutive years. Johnson & Johnson has now increased its dividend for 64 straight years, a record that spans recessions, market crashes, and geopolitical shocks. That consistency is rare in a market still 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, the attraction here is the mix of growth and safety. The dividend is backed by substantial liquidity: management projects free cash flow of roughly $21 billion in 2026. That level of cash generation helps ensure the company can pay shareholders, fund research, and handle legal expenses without resorting to heavy borrowing. For risk-averse investors, one compelling metric 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 a stock moves in step with the market. Johnson & Johnson's beta is 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 tech-heavy portfolio can act as a mathematical shock absorber, reducing overall volatility while keeping equity exposure. Beyond the Patent Cliff: The Road to $100 Billion One misconception about "safe" stocks is that they cannot grow. Johnson & Johnson is disproving that with a strategic pivot that is producing results. Management has issued strong guidance for 2026, projecting full-year revenue to surpass $100 billion for the first time in the company's history. The company also anticipates adjusted earnings per share (EPS) of about $11.53. This growth is driven by a successful reinvention of its pharmaceutical division, now branded as Innovative Medicine. For years, investors worried about the patent cliff after Stelara, a blockbuster immunology drug, lost exclusivity in 2025. Typically, when a top drug faces generic competition revenue can collapse. J&J has absorbed that decline through the rise of new blockbusters. Two key assets are driving this resilience: - Darzalex: This oncology powerhouse generates about $14 billion in annual sales and has cemented the company's leadership in treating multiple myeloma.
- Tremfya: Positioned as a successor to Stelara, Tremfya recently released strong three-year remission data for ulcerative colitis, helping J&J retain market share in the competitive immunology space.
The Tech in MedTech: High-Margin Technologies The growth story extends beyond pharmaceuticals into MedTech. That division has shifted to focus on higher-growth, higher-margin technologies, exemplified by the integration of Shockwave Medical to modernize the cardiovascular portfolio. Shockwave uses intravascular lithotripsy (IVL) technology — sonic pressure waves to break up calcified plaque in arteries, similar to how kidney stones are treated. This is a meaningful improvement over traditional angioplasty balloons. By owning this technology, Johnson & Johnson has added a high-growth asset that complements its existing heart-pump technologies and surgical businesses. The company is also making moves in 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 high-tech devices typically carry higher profit margins and build sticky relationships with hospital systems, creating a long-term earnings tailwind that goes beyond basic surgical supplies. Addition by Subtraction: The Orthopedics Strategy To sustain growth and improve margins, management is actively reshaping the company. A major development is the potential separation or sale of the DePuy Synthes orthopedics business. While originally discussed as a spin-off, recent reports suggest the company is exploring a large-sale option. Divesting the orthopedics unit is an "addition by subtraction" strategy. Orthopedics is a mature, lower-growth business compared with the booming fields of oncology and cardiovascular technologies. Shedding that slower unit would improve overall revenue-growth rates and profit margins. A sale could also generate a sizable one-time cash infusion, providing additional capital for acquisitions or share buybacks. Legal risks remain an important consideration. J&J 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 noise to the news cycle. Still, the stock's recent rally implies the market may be looking past those headlines. Bulls argue J&J has the financial depth to manage these liabilities without disrupting operations. With more than $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 makes these legal battles 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, technology-driven healthcare company. By divesting its consumer health division (Kenvue (NYSE: KVUE)) and potentially its orthopedics unit, management is streamlining operations to concentrate on high-growth opportunities in pharmaceuticals and medical technology. Although the stock is no longer a bargain, trading near all-time highs, it offers a blend of capital preservation and growth that is hard to find elsewhere. The combination of a 64-year dividend growth streak, a low-volatility profile, and a clear path to $100 billion in revenue makes Johnson & Johnson a compelling option for 2026. For investors tired of the tech sector's unpredictability, J&J demonstrates that, in the current market environment, boring can be both beautiful and profitable.
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