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This Month's Bonus News Boring Is Beautiful: Why Johnson & Johnson Is Beating the Tech SectorBy Jeffrey Neal Johnson. 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 is experiencing 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 roughly $245 per share, a divergence that has caught Wall Street's attention. This rally contradicts the common perception 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, reliable cash flow, and steady execution. 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. The stock price will likely gap down by roughly the upcoming dividend amount, $1.30 per share. That decline is a mechanical market adjustment — not a reflection of business performance — and for income-focused investors it often represents an attractive entry point rather than a signal to exit. 64 Years of Unbroken Growth The primary case for holding Johnson & Johnson through turbulent market cycles centers on its financial stability and its role as a portfolio stabilizer. The company belongs to an elite group of equities known as Dividend Kings — firms 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 about 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 is the combination of steady income and downside protection. Management projects free cash flow of approximately $21 billion in 2026, a level of cash generation that helps ensure the company can continue paying shareholders, investing in R&D, and managing legal expenses without heavy borrowing. For risk-averse investors, one 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 the stock moves in lockstep with the market. Johnson & Johnson currently has a beta of just 0.35 — historically about 65% less volatile than the broader market. When tech stocks swing wildly, J&J tends to hold its ground. Adding JNJ to a portfolio heavy in technology acts as a mathematical shock absorber, dampening overall volatility while preserving equity exposure. 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 notion with a strategic pivot that appears to be paying off. Management has issued strong guidance for 2026, projecting full-year revenue to surpass the $100 billion threshold for the first time in company history. The firm also expects adjusted earnings per share (EPS) of roughly $11.53. This growth is driven by a reinvention of its pharmaceutical division, now branded as Innovative Medicine. Investors had long feared a patent cliff after Stelara lost exclusivity in 2025, which typically leads to revenue erosion. Instead, J&J has offset that decline with the fast rise of new blockbuster drugs. Two key assets are driving this resilience: - Darzalex: This oncology powerhouse is generating about $14 billion in annual sales and has cemented J&J's leadership in multiple myeloma treatment.
- Tremfya: Positioned as a successor to Stelara, Tremfya recently released strong three-year data on remission rates 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 the MedTech division, which has refocused on high-growth, high-margin technologies. A prime example is the integration of Shockwave Medical, acquired to modernize the cardiovascular portfolio. Shockwave uses intravascular lithotripsy (IVL) technology, which employs sonic pressure waves to safely break up calcified plaque in arteries — similar to the treatment for kidney stones. That represents a meaningful upgrade over traditional angioplasty balloons. By adding this technology, Johnson & Johnson secured a high-growth asset that complements its existing heart pump (Abiomed) and surgical businesses. The company is also making strides 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 high-tech devices carry higher profit margins and create sticky relationships with hospital systems, supporting a long-term earnings tailwind that goes beyond basic consumables. Addition by Subtraction: The Orthopedics Strategy To maintain growth and improve margins, management is actively 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 mega sale of the asset. Divesting the orthopedics unit is a classic addition-by-subtraction move. Orthopedics is a mature, lower-growth business compared with the booming fields of oncology and cardiovascular devices. Shedding this slower unit would improve overall revenue growth and profit margins. A sale could also generate a significant lump-sum cash payment — potentially billions — providing additional capital for acquisitions or share buybacks. Legal risks remain an important consideration. The company continues to face litigation over talc products, with a recent $1.5 billion verdict keeping the issue in the headlines. A new commercial lawsuit from Bayer about marketing claims for prostate cancer drugs has added more noise. Still, the stock's recent rally suggests the market is looking past these headlines. The prevailing view among bulls 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 roughly $21 billion in annual free cash flow, the company has a financial fortress capable of absorbing settlements. That 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 focused, high-tech healthcare company. By spinning off its consumer health division (Kenvue (NYSE: KVUE)) and potentially divesting orthopedics, the company is streamlining to concentrate on higher-growth opportunities in pharmaceuticals and medical technology. While the stock is no longer a deep-value play, trading near all-time highs, it offers a compelling blend of capital preservation and upside. 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 an attractive option for 2026. For investors exhausted by the unpredictability of the technology sector, Johnson & Johnson proves that, in the current market environment, boring can be both beautiful and profitable.
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