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This Week's Exclusive News Boring Is Beautiful: Why Johnson & Johnson Is Beating the Tech SectorWritten by Jeffrey Neal Johnson. Publication Date: 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 about $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. That 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 today, Feb. 24, 2026, note an important calendar event: this is the ex-dividend date for Johnson & Johnson. On an ex-dividend date, the stock typically declines by the amount of the upcoming dividend—$1.30 per share in this case—because new buyers are no longer entitled to that payment. That move is a mechanical market adjustment, not a reflection of business fundamentals. For income-focused investors, the technical dip often represents an attractive entry point rather than a sell signal. 64 Years of Unbroken Growth The primary argument for holding Johnson & Johnson through 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 payout for at least 50 consecutive years. Johnson & Johnson has now raised its dividend for 64 consecutive years, a track record that spans multiple recessions, market crashes, and geopolitical conflicts. That reliability is rare in a market often focused on speculative growth. The stock currently yields approximately 2.12%, based on an annual payout of $5.20 per share. While higher yields can be found in bonds or riskier sectors, J&J's appeal lies in the combination of growth and safety. Management projects free cash flow of roughly $21 billion in 2026, a significant liquidity cushion that supports dividend payments, R&D investment, and legal expense management without heavy borrowing. For risk-averse investors, a standout metric is the stock's Beta, which measures how much a stock moves relative to the overall market (S&P 500). A Beta of 1.0 moves in lockstep with the market; Johnson & Johnson's Beta is just 0.35, indicating the stock has historically been about 65% less volatile than the broader market. When tech stocks swing wildly, J&J tends to hold ground—making it a useful volatility dampener in tech-heavy portfolios. Beyond the Patent Cliff: The Road to $100 Billion A common misconception about "safe" stocks is that they cannot grow. Johnson & Johnson is disproving that with a strategic pivot that appears to be paying off. Management has issued strong guidance for 2026, projecting full-year revenue to cross 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. This growth is being driven by a reinvigorated pharmaceutical division, now branded as Innovative Medicine. Investors had feared a revenue collapse after Stelara, a blockbuster immunology drug, lost exclusivity in 2025. Instead, J&J has offset that decline through the rapid ascent of new blockbusters. Two key assets are driving this resilience: - Darzalex: This oncology powerhouse is generating about $14 billion in annual sales and has cemented the company's leadership in multiple myeloma therapy.
- Tremfya: Positioned as a successor to Stelara, Tremfya recently posted strong three-year remission data for ulcerative colitis—evidence that J&J can defend market share in a competitive immunology landscape.
The Tech in MedTech: High-Margin Technologies The growth story extends into the MedTech division, which has shifted focus to high-growth, higher-margin technologies. A prominent example is Shockwave Medical, acquired to modernize the cardiovascular portfolio. Shockwave's intravascular lithotripsy (IVL) technology uses sonic pressure waves to break up calcified plaque in arteries—similar in concept to how kidney stones are treated—and represents a significant upgrade over traditional angioplasty balloons. Owning this technology gives Johnson & Johnson a high-growth asset that complements its existing heart-recovery devices (e.g., heart pumps like those from Abiomed) and surgical businesses. J&J is also pushing into robotics. The submission of its Ottava robotic surgical system for FDA approval signals an ambition 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 long-term earnings tailwind beyond commodity medical supplies. Addition by Subtraction: The Orthopedics Strategy To sustain growth and improve margins, management is reshaping the corporate structure. A major development is the potential separation of the DePuy Synthes orthopedics business. Originally planned as a spin-off, recent reports indicate the company is exploring a possible sale of the asset. Divesting the orthopedics unit would be a classic addition-by-subtraction move: orthopedics is a mature, lower-growth business compared with booming oncology drugs and cardiovascular technologies. Shedding this slower unit would improve overall revenue growth and profit margins. A sale could also generate a significant lump-sum cash inflow—potentially billions of dollars—for acquisitions or share buybacks. Legal risks remain a material consideration. J&J continues to face litigation over talc products, highlighted by a recent $1.5 billion verdict, and a new commercial lawsuit from Bayer over marketing claims for prostate cancer drugs. These headlines add noise to the news cycle. Still, the stock's recent rally suggests the market is looking past them. Bulls argue the company has the financial depth to manage these liabilities without disrupting operations. With over $20 billion in cash and marketable securities, potential proceeds from an orthopedics sale, and roughly $21 billion in annual free cash flow, J&J has the financial capacity to absorb settlements without threatening the dividend or core businesses. Capital Preservation With Upside Johnson & Johnson has evolved from a slow-moving conglomerate into a more focused, high-tech healthcare company. By divesting its consumer health division (Kenvue (NYSE: KVUE)) and potentially the orthopedics unit, management is streamlining operations to concentrate on higher-growth opportunities in pharmaceuticals and medical technology. While 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 J&J a compelling holding for 2026. For investors tired of the unpredictability in the technology sector, Johnson & Johnson shows that, in the current market environment, boring can be both beautiful and profitable.
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