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This Week's Featured Content Boring Is Beautiful: Why Johnson & Johnson Is Beating the Tech SectorWritten by Jeffrey Neal Johnson. Article 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.
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While the technology sector is experiencing renewed volatility driven by artificial intelligence (AI) speculation and valuation concerns, 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 stock that is quietly outperforming. Johnson & Johnson (NYSE: JNJ) is trading near all-time highs of roughly $245 per share, a divergence that has attracted Wall Street's attention. This rally challenges the perception of the healthcare giant as a slow-moving, boring stock. Over the last 30 days, shares have climbed about 14%, significantly outpacing 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, predictable cash flow, and operational execution. I Met Elon Musk "Face-to-Face"
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March 26, 2026. Circle it on your calendar.
I'm sharing an "access code" that lets anyone grab a pre-IPO stake before it happens. This is your invitation to the biggest wealth-building event of the decade. Click Here to See how to Get Your "SpaceX Access Code" For investors watching the ticker today, Feb. 24, 2026, note an important calendar item: today is the ex-dividend date for Johnson & Johnson. The stock price will typically decline by the amount of the upcoming dividend payment, $1.30 per share. That is a mechanical market adjustment rather than a reflection of business performance. For income-focused investors, this technical dip often represents an attractive entry point rather than a sell signal. 64 Years of Unbroken Growth The main reason many investors hold 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 recessions, market crashes, and geopolitical shocks. That reliability is rare in a market often dominated by 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, J&J's appeal lies in the blend of income and safety. Management projects free cash flow of roughly $21 billion in 2026, providing a substantial cushion to pay dividends, fund R&D, and manage legal expenses without significant new borrowing. For risk-averse investors, another compelling 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 means a 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 broader market. When tech stocks swing wildly, J&J tends to hold its ground—making it an effective volatility dampener in mixed portfolios. 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 view with a strategic pivot that is yielding 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. Alongside that milestone, the company expects adjusted earnings per share (EPS) of around $11.53. That growth is driven by a reinvention of its pharmaceutical division, now branded as Innovative Medicine. Investors had been concerned about the patent cliff for Stelara, a blockbuster immunology drug that lost exclusivity in 2025. Typically, when a top drug faces generic competition, revenue can fall sharply. J&J, however, has offset that decline with new blockbusters. Two key assets are driving this resilience: - Darzalex: This oncology therapy is generating about $14 billion in annual sales and has helped cement the company's leadership in multiple myeloma treatment.
- Tremfya: Positioned as a successor to Stelara, Tremfya recently reported strong three-year remission data in Ulcerative Colitis, signaling the company's ability to defend market share in immunology.
The Tech in MedTech: High-Margin Technologies The growth story also extends into MedTech. This segment has shifted toward higher-growth, higher-margin technologies, including the successful 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—similar in concept to how kidney stones are treated—and represents a meaningful 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 tend to carry higher profit margins and create durable 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 portfolio. A major development is the potential separation or sale of the DePuy Synthes orthopedics business. While initially planned as a spin-off, recent reports suggest the company is exploring a large-scale sale. Divesting the orthopedics unit would be an example of "addition by subtraction." Orthopedics is a mature, lower-growth business compared with booming fields like oncology and advanced cardiac devices. Shedding this slower segment would likely raise the company's overall growth rate and margins. A sale could also generate a significant one-time cash infusion—potentially billions—available for acquisitions, debt reduction, or share repurchases. Legal risks remain part of the investment case. Johnson & Johnson continues to face litigation over talc products, including a recent $1.5 billion verdict that has kept the issue in the headlines. A commercial lawsuit from Bayer concerning marketing claims for prostate cancer drugs has also added noise to the news cycle. Still, the stock's recent rally suggests the market is looking past these headlines. The prevailing bullish view is that Johnson & Johnson has the balance-sheet 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 appears well-positioned to absorb legal settlements without endangering the dividend or core businesses. Capital Preservation With Upside Johnson & Johnson has evolved from a slow-moving conglomerate into a more focused, technology-forward healthcare company. After separating its consumer health division (Kenvue (NYSE: KVUE)) and potentially divesting orthopedics, management is concentrating on higher-growth opportunities in pharmaceuticals and medical technology. Although the stock trades near all-time highs and is no longer a deep-value play, it offers a compelling mix of capital preservation and growth. The combination of a 64-year dividend growth streak, a low volatility profile, and a clear path to $100 billion in revenue make J&J an attractive option for 2026. For investors fatigued by the unpredictability of the technology sector, Johnson & Johnson demonstrates that, in the current market environment, boring can be both beautiful and profitable.
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