When markets are volatile and clouded by uncertainty, investors look for stability. And you can find that stability in dividend stocks, especially the Dividend Kings, which have a track record of consistent dividend payments and growth for more than 50 years. Johnson & Johnson (JNJ), one of the world’s largest and most diversified healthcare companies, is one such dividend king.
Although J&J isn’t a high-flying growth stock, it quietly outperformed the market last year. JNJ stock rose 43.7%, compared to the market’s overall gain of 16.6%. One month into 2026, the stock is up more than 10%, outperforming the S&P 500 index ($SPX).
J&J’s recent fourth-quarter results reveal why you should buy and hold this dividend stock if you haven’t already.
In 2023, Johnson & Johnson made the bold decision to spin off its consumer division — which included well-known, everyday brands like Tylenol, Listerine, Neutrogena, and others — into a separate company, Kenvue (KVUE). The goal was to establish a pure-play healthcare innovation business focused solely on pharmaceuticals and medical devices. This decision has worked well. Its business today operates in two major segments:
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Innovative Medicine (Pharmaceuticals) focuses on the development of prescription drugs in oncology, immunology, neurology, and cardiovascular and pulmonary diseases.
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MedTech (Medical Devices) refers to medical technologies used by hospitals and surgeons.
The Innovative Medicines segment generates most of J&J’s revenue and drives most of its growth. In the fourth quarter, the segment generated $15.7 billion in revenue, a 10% year-over-year increase. For the full year, segment revenue increased 6% to $60.4 billion. The company reported a 5.3% increase in global sales to $94.2 billion despite a significant headwind from the loss of exclusivity on Stellara. Adjusted diluted earnings per share rose 8.1% year over year to $10.79.
With 21% operating sales growth projected to 2025 and annual sales of more than $50 billion by 2030, oncology is one of the company’s biggest growth engines. Meanwhile, MedTech segment revenue grew 7.5% in Q4 and 6.1% for the full year, generating $34 billion in sales, driven by cardiovascular, surgery, and vision. With more than 60 active clinical trials and multiple regulatory submissions planned, medtech continues to provide the second major growth pillar along with pharmaceuticals.
