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Further Reading from MarketBeat Media Boring Is Beautiful: Why Johnson & Johnson Is Beating the Tech SectorAuthored by Jeffrey Neal Johnson. Originally 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) scare trades and valuation concerns, a different story is playing out 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 challenges 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, steady cash flow, and reliable execution. I Called Black Monday. Now I'm Calling March 26!
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Today, I'll show you how to get in before the big announcement. Click Here to See How to Secure Your "SpaceX Access Code" For investors watching the ticker on Feb. 24, 2026, note an important calendar event: it is the ex-dividend date for Johnson & Johnson. The stock will typically drop by roughly the dividend amount—$1.30 per share—on that date. That decline is a mechanical market adjustment, not a reflection of business performance. For income-focused investors, the 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 market cycles is its deep financial stability and role as a portfolio stabilizer. The company is part of an elite group 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 track record spanning multiple recessions, market crashes, and geopolitical crises. That reliability is rare in a market often dominated by speculative growth. Currently, the stock yields approximately 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 its blend of growth and safety. Management projects free cash flow of roughly $21 billion in 2026, providing a large liquidity cushion to support dividends, R&D, and legal expenses 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 overall market (S&P 500). A beta of 1.0 means the stock tracks the market closely; Johnson & Johnson currently has a beta of about 0.35. Historically, the stock has been roughly 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 acts as a mathematical shock absorber, reducing overall volatility while preserving equity exposure. Beyond the Patent Cliff: The Road to $100 Billion A common misconception about "safe" stocks is that they don't grow. Johnson & Johnson is disproving that notion with a strategic pivot that appears to be paying off. Management has issued strong guidance for 2026, projecting full-year revenue to top $100 billion for the first time in company history and forecasting adjusted earnings per share of about $11.53. That growth is being driven by a reinvention of its pharmaceutical division, now branded as Innovative Medicine. Investors had been wary of a patent cliff after Stelara lost exclusivity in 2025. Normally, such losses can sharply reduce revenue. J&J, however, has offset that decline with the rapid ascent of new blockbusters. Two key assets are driving this resilience: - Darzalex: An oncology powerhouse generating roughly $14 billion in annual sales. It has cemented J&J's leadership in treating multiple myeloma and become a foundational therapy worldwide.
- Tremfya: Positioned as a successor to Stelara, Tremfya produced strong three-year remission data for ulcerative colitis, helping the company retain market share in the competitive immunology space.
The Tech in MedTech: High-Margin Technologies The growth story extends beyond pharmaceuticals into MedTech. That segment has shifted toward high-growth, high-margin technologies, notably through the integration of Shockwave Medical to modernize the cardiovascular portfolio. Shockwave uses intravascular lithotripsy (IVL), which employs sonic pressure waves to safely fracture calcified plaque in arteries—similar in principle to how kidney stones are treated. This is a notable upgrade over traditional angioplasty balloons. By owning IVL technology, Johnson & Johnson has added a high-growth asset that complements its 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 intent to compete directly in the expanding soft-tissue robotics market. These devices carry higher profit margins and foster sticky relationships with hospital systems, providing a durable earnings tailwind beyond basic consumables. 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 or sale of the DePuy Synthes orthopedics business. Originally planned as a spin-off, recent reports suggest the company is exploring a large sale instead. Divesting the orthopedics unit would be a classic "addition by subtraction." Orthopedics is a mature, lower-growth business compared with booming fields like oncology and advanced cardiovascular devices. Shedding that slower unit would boost overall revenue growth rates and margins. A sale would also generate a substantial one-time cash inflow—potentially billions—providing capital for acquisitions, accelerated share buybacks, or debt reduction. Legal risk remains a material consideration. The company continues to face talc-related litigation, including a recent $1.5 billion verdict, and a separate commercial lawsuit from Bayer over marketing claims related to prostate cancer drugs has added further headlines. Still, the stock's recent rally indicates the market may be looking past these issues. The prevailing view among bulls is that 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 about $21 billion in projected free cash flow, the company has a strong balance sheet capable of absorbing settlements. That financial strength makes legal battles a line item on the balance sheet rather than an existential threat to the dividend or the business. Capital Preservation With Upside Johnson & Johnson has evolved from a slow-moving conglomerate into a more focused, high-tech healthcare company. After separating from its consumer health division (Kenvue (NYSE: KVUE)) and potentially divesting orthopedics, management is streamlining the business to concentrate on 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 upside 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 option for 2026. For investors tired of the tech sector's unpredictability, Johnson & Johnson shows that, in the current market, boring can be both beautiful and profitable.
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