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This Week's Bonus Article Boring Is Beautiful: Why Johnson & Johnson Is Beating the Tech SectorReported by Jeffrey Neal Johnson. First Published: 2/24/2026. 
Article Highlights - 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.
While the technology sector is facing renewed volatility driven by artificial intelligence "scare trades" and valuation worries, a different story is unfolding in the healthcare sector. Investors fleeing the jittery price swings of high-growth tech names are finding shelter in a familiar company that is quietly outperforming. Johnson & Johnson (NYSE: JNJ) is trading near all-time highs of roughly $245 per share, creating a divergence that has captured Wall Street's attention. This rally runs counter to the stereotype of the healthcare giant as a slow-moving, boring stock. Over the past 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 placing a premium on stability, predictable cash flow, and operational execution. For investors watching the ticker on Feb. 24, 2026, it's important to note a specific calendar event: today is the ex-dividend date for Johnson & Johnson. The stock price will likely drop roughly by the upcoming dividend amount, $1.30 per share. That is a mechanical market adjustment, not a reflection of underlying business performance. For income-focused investors, this technical dip often presents an attractive entry point rather than a signal to sell. 64 Years of Unbroken Growth The core argument for holding Johnson & Johnson through turbulent market cycles is its financial strength 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 shocks. That level of reliability is rare in a market fixated 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 the bond market or riskier sectors, J&J's appeal lies in the blend of growth and safety. Management projects free cash flow near $21 billion in 2026, providing a substantial liquidity cushion to fund dividends, R&D, and legal obligations without heavy borrowing. For risk-averse investors, another compelling metric is the stock's beta. Beta measures how much a stock moves relative to the broader market (S&P 500). A beta of 1.0 means the stock moves in step with the market. Johnson & Johnson's beta is just 0.35, indicating the stock has historically been about 65% less volatile than the market. When tech names swing wildly, J&J tends to hold its ground. Adding JNJ to a tech-heavy portfolio acts as a mathematical shock absorber, reducing overall volatility while maintaining equity exposure. Beyond the Patent Cliff: The Road to $100 Billion Safe stocks are often assumed to be stagnant, but Johnson & Johnson is proving otherwise with a strategic pivot that's gaining traction. Management has issued strong guidance for 2026, projecting full-year revenue to surpass $100 billion for the first time in the company's history, alongside adjusted earnings per share of roughly $11.53. That growth stems from a reinvigorated pharmaceutical division, now branded as Innovative Medicine. Investors worried about the patent cliff for Stelara — a blockbuster immunology drug that lost exclusivity in 2025 — have seen those concerns offset by the rise of newer blockbusters. Two key assets are driving this resilience: - Darzalex: An oncology cornerstone generating about $14 billion in annual sales, Darzalex 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, underscoring the company's ability to retain market share amid competition.
The Tech in MedTech: High-Margin Technologies The growth story extends beyond pharmaceuticals into MedTech. That segment has shifted toward high-growth, higher-margin technologies, exemplified by 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 — an upgrade over traditional angioplasty balloons. Owning this technology gives Johnson & Johnson a high-growth asset that complements its heart pump (Abiomed) and surgical businesses. J&J is also advancing in robotics. Its Ottava robotic surgical system is under FDA review, signaling an intent to compete in the expanding soft-tissue robotics market. These devices typically command higher profit margins and create sticky hospital relationships, providing a long-term earnings tailwind beyond commoditized products. Addition by Subtraction: The Orthopedics Strategy To sustain growth and improve margins, management is reshaping the corporate portfolio. One major development is the potential separation of the DePuy Synthes orthopedics business. Originally slated as a spin-off, recent reports suggest the company is exploring a large-scale sale of the unit. Divesting orthopedics is a classic addition-by-subtraction play. Orthopedics is a mature, lower-growth business compared with booming areas like oncology and advanced cardiac devices. Shedding this slower unit would raise overall revenue growth rates and margins, and a sale could generate a significant lump-sum payment to fund acquisitions or share buybacks. Legal risks remain a necessary part of any balanced evaluation. J&J still faces talc-related litigation, including a recent $1.5 billion verdict, and a new commercial lawsuit from Bayer over prostate cancer drug marketing claims. These headlines add noise, but they do not appear to be derailing the operational story. The market's recent rally suggests investors believe J&J can absorb these liabilities. 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 the financial firepower to handle settlements without threatening the dividend or core operations. For most analysts, legal exposures remain a line-item on the balance sheet rather than an existential threat. Capital Preservation With Upside Johnson & Johnson has evolved from a diversified conglomerate into a more focused, higher-tech healthcare company. By shedding its consumer health arm (Kenvue (NYSE: KVUE)) and potentially divesting orthopedics, management is concentrating resources on higher-growth opportunities in pharmaceuticals and MedTech. Although the stock is trading near all-time highs and is no longer a deep-value bargain, it offers a rare combination of capital preservation and upside. The mix of a 64-year dividend growth streak, a notably low volatility profile, and a clear path to $100 billion in revenue makes J&J a compelling option for 2026. For investors tired of the unpredictability of the technology sector, Johnson & Johnson is a reminder that, right now, boring can be both beautiful and profitable.
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