Johnson & Johnson (JNJ) is a Dividend King, offering stability with a track record of paying and increasing dividends for over 50 years. Despite not being a high-growth stock, JNJ outperformed the market in 2025, with a 43.7% gain. Recent fourth-quarter results show a strong case for investing in this dividend stock.

In 2023, Johnson & Johnson spun off its consumer division to create Kenvue (KVUE), focusing on Innovative Medicine (Pharmaceuticals) and MedTech (Medical Devices). Innovative Medicine generated $15.7 billion in Q4 revenue, driving J&J’s overall revenue of $94.2 billion. MedTech’s revenue grew 7.5% in Q4, totaling $34 billion for the year.

Johnson & Johnson’s diverse revenue sources from medical equipment and medications ensure steady income streams, leading to consistent dividend payments for 63 years. With $19.7 billion in free cash flow in 2025, J&J can invest in innovation and reward shareholders. The company’s strong balance sheet and growth projections support further investment and shareholder returns.

For 2026, Johnson & Johnson expects operational sales growth of 6%, with revenue surpassing $100 billion. Adjusted EPS is forecast to reach $11.53, supported by product launches and operational efficiency. Free cash flow is expected to rise to $21 billion, providing flexibility for investments and shareholder rewards. Analysts rate JNJ stock a “Moderate Buy” with a high target price of $265, indicating potential upside of 16.4% in the next 12 months.

Read more at Yahoo Finance: 1 Dividend King to Buy and Hold Through Any Market