When markets are volatile and uncertain, investors seek stability. You can find stability in dividend stocks, especially Dividend Kings, which have a track record of consistently paying and growing dividends 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 Johnson & Johnson isn’t a high-growth stock, it quietly outperformed the market last year. JNJ shares soared 43.7%, while the market as a whole rose 16.6%. One month into 2026, the stock is up more than 10%, outpacing the S&P 500 Index ($SPX).
Johnson & Johnson’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 consists of well-known everyday brands such as Tylenol, Listerine, Neutrogena, etc.) into an independent company called Kenvue (KVUE). The goal is to build a pure-play healthcare innovation business focused on pharmaceuticals and medical devices. This decision worked very well. Today, its business is mainly divided into two parts:
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Innovative Medicine (Pharmaceuticals) focuses on the development of prescription drugs in the areas of oncology, immunology, neurology, cardiovascular and pulmonary diseases.
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MedTech (Medical Devices) refers to medical technology used by hospitals and surgeons.
The Innovative Medicines segment generates most of Johnson & Johnson’s revenue and drives much of its growth. In the fourth quarter, the segment achieved revenue of $15.7 billion, a year-on-year increase of 10%. Full-year revenue for the segment increased 6% to $60.4 billion. The company reported that global sales rose 5.3% to $94.2 billion, despite significant headwinds from the loss of Stelara exclusivity. Adjusted diluted earnings per share increased 8.1% year over year to $10.79.
Operating sales will grow 21% in 2025 and annual sales are expected to exceed $50 billion by 2030, with oncology remaining one of the company’s largest growth engines. Meanwhile, revenue in the medical technology segment rose 7.5% in the fourth quarter and 6.1% for the full year, driven by its cardiovascular, surgical and vision businesses, with sales reaching $34 billion. With over 60 active clinical trials and multiple regulatory submissions planned, medtech will continue to be the second major growth pillar after pharmaceuticals.
