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Further Reading from MarketBeat Media Boring Is Beautiful: Why Johnson & Johnson Is Beating the Tech SectorAuthor: Jeffrey Neal Johnson. Date Posted: 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 about $245 per share, creating a divergence that has caught Wall Street's attention. This rally undercuts the common 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 capital is rotating out of riskier assets and placing a premium on stability, reliable cash flow, and operational execution. I've Rarely Seen This With Silver
This combination - 20% dividends + 68% share appreciation - never happens with silver. But it is now possible thanks to a new ETF that delivers the best of worlds. Click here to watch the video. For investors watching the ticker today, Feb. 24, 2026, it's important to note a specific calendar event. Today is the ex-dividend date for Johnson & Johnson, so the stock price will likely drop by the upcoming dividend amount of $1.30 per share. That is a mechanical adjustment, not a reflection of business performance or a sell-off. For income-focused investors, this technical dip often represents an attractive entry point rather than a reason to exit. 64 Years of Unbroken Growth The primary case for holding Johnson & Johnson during turbulent markets is its financial stability and its role as a portfolio stabilizer. The company is part of an elite group known as Dividend Kings — companies that have increased their dividend 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 shocks. This consistency is rare in a market often fixated on speculative growth. The stock currently yields about 2.12%, based on an annual payout of $5.20 per share. While higher yields can be found in bonds or riskier sectors, the attraction here is the mix of growth and safety. Management projects free cash flow of roughly $21 billion in 2026, a level of cash generation that supports dividend payments, R&D investment, and legal expense management without heavy borrowing. For risk-averse investors, one of the most compelling metrics is the stock's beta. Beta measures how much a stock moves compared to the overall 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, meaning it has been about 65% less volatile than the broader market historically. 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, dampening volatility while preserving equity exposure. Beyond the Patent Cliff: The Road to $100 Billion Safe stocks are often assumed to be growth-limited. Johnson & Johnson is disproving that with a strategic pivot that appears to be working. Management guided for 2026 full-year revenue to surpass $100 billion for the first time in company history. Alongside that milestone, the company expects an adjusted earnings per share (EPS) of about $11.53. That growth stems largely from a reinvigorated pharmaceutical division, now branded Innovative Medicine. Investors had worried about the patent cliff for Stelara after it lost exclusivity in 2025. Typically, a blockbuster facing generic competition sees revenues collapse. J&J, however, has offset that decline with new blockbusters rising quickly. Two key assets drive this resilience: - Darzalex: This oncology powerhouse generates approximately $14 billion in annual sales and has become foundational in treating multiple myeloma worldwide.
- Tremfya: Positioned as a successor to Stelara, Tremfya recently released strong three-year remission data for ulcerative colitis, helping the company retain market share in the competitive immunology space as older drugs fade.
The Tech in MedTech: High-Margin Technologies The growth story extends beyond pharma into the MedTech division, which has shifted toward high-growth, high-margin technologies. A clear example is the integration of Shockwave Medical, acquired to modernize the cardiovascular portfolio. Shockwave Medical uses intravascular lithotripsy (IVL), which applies sonic pressure waves to break up calcified plaque in arteries — similar to treatments for kidney stones. That represents a significant upgrade over traditional angioplasty balloons. Owning this technology gives Johnson & Johnson 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 in the expanding soft-tissue robotics market. These high-tech devices typically carry higher profit margins and create sticky relationships with hospital systems, providing a long-term earnings tailwind beyond basic surgical tools and supplies. Addition by Subtraction: The Orthopedics Strategy To sustain growth and improve margins, management is reshaping the corporate structure. One 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 mega sale instead. Divesting orthopedics would be an addition-by-subtraction move. Orthopedics is a mature, lower-growth business compared with booming fields like oncology and advanced cardiac devices. Shedding that unit would boost overall revenue growth rates and margins. A sale would also generate a sizeable cash infusion — potentially billions — that could fund acquisitions or share buybacks. Legal risks remain a consideration. The company continues to face litigation over talc products, with a recent $1.5 billion verdict keeping the issue in headlines. A new commercial lawsuit from Bayer over prostate cancer drug marketing claims has added noise to the news cycle. Still, the market's recent rally suggests investors are looking past the headlines. The bullish view is that Johnson & Johnson 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 annual free cash flow, the company has the resources to absorb settlements. That financial strength makes legal battles a balance-sheet item rather than an existential threat to the dividend or operations. Capital Preservation With Upside Johnson & Johnson has evolved from a slow-moving conglomerate into a more focused, tech-forward healthcare company. After spinning off its consumer health division (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 bargain, 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 J&J an attractive option for 2026. For investors tired of the technology sector's unpredictability, Johnson & Johnson shows that, in the current market environment, boring can be both beautiful and profitable.
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