Dividend Aristocrats In Focus: Johnson & Johnson – Sure Dividend

Up to date on January twenty seventh, 2026 by Bob Ciura

Johnson & Johnson (JNJ) is an organization that many buyers are doubtless aware of. J&J has been in operation for greater than 130 years and has raised its dividend for over 60 years in a row.

It has one of many longest and most spectacular histories of any dividend progress inventory.

J&J is a long-standing member of the Dividend Aristocrats.

You possibly can see a full downloadable listing of all 69 Dividend Aristocrats (together with essential monetary metrics reminiscent of dividend yields and price-to-earnings ratios) by clicking the hyperlink under:

Disclaimer: Certain Dividend just isn’t affiliated with S&P International in any means. S&P International owns and maintains The Dividend Aristocrats Index. The knowledge on this article and downloadable spreadsheet relies on Certain Dividend’s personal evaluate, abstract, and evaluation of the S&P 500 Dividend Aristocrats ETF (NOBL) and different sources, and is supposed to assist particular person buyers higher perceive this ETF and the index upon which it’s based mostly. Not one of the info on this article or spreadsheet is official knowledge from S&P International. Seek the advice of S&P International for official info.

Not solely is Johnson & Johnson a Dividend Aristocrat, however additionally it is a Dividend King as effectively.

The Dividend Kings are an much more unique group of shares, with 50+ years of consecutive dividend will increase. There are simply 57 corporations which have achieved this accomplishment.

J&J has the entire qualities to search for in nice dividend progress shares. It has a dividend yield above the S&P 500 common, backed by a robust model and extremely worthwhile enterprise mannequin, with potential for long-term progress.

This text will focus on the quintessential Dividend Aristocrat that’s Johnson & Johnson.

Enterprise Overview

J&J is likely one of the largest corporations on this planet, however it began from humble beginnings. It was based in 1886 by three brothers, Robert, James, and Edward Johnson.

In 1888, the three brothers printed a healthcare manuscript titled “Trendy Strategies of Antiseptic Wound Remedy,” which rapidly turned the main customary for antiseptic surgical procedure strategies.

Over the next many years, the corporate steadily launched new merchandise to market. Quickly, it was the main producer throughout a number of healthcare classes.

Right now, J&J is a world healthcare big. It has a market capitalization above $500 billion. J&J is a mega-cap inventory, a time period to explain shares with market caps above $200 billion.

Progress Prospects

On January twenty first, 2026, Johnson & Johnson launched fourth quarter and full yr outcomes. For the quarter, income elevated 9.3% to $24.6 billion, which was $440 million greater than anticipated.

Adjusted earnings-per-share of $2.46 in contrast favorably to $2.04 and matched estimates. For the yr, income grew 6% to $94.2 billion whereas adjusted earnings-per-share of $10.79 in comparison with $9.98 in 2024.

Income for Modern Medicines grew 10% on a reported foundation and seven.9% on an operational foundation. Infectious Illness decreased 0.4% as ongoing power in Edurant, which is used to deal with HIV, was greater than offset by weak point in the remainder of the portfolio.

Oncology grew 21.9% on account of rising demand for Darzalex, which treats a number of myeloma, and continued excessive demand in a number of different merchandise.

Income for MedTech grew 7.5% on a reported foundation and 5.8% on an operational foundation. Cardiovascular continues to supply wonderful outcomes, as gross sales have been up 10.1% on account of new merchandise.

Gross sales for Surgical procedure improved 3.7% as beneficial properties in biosurgery offset by aggressive pressures in endocutters. Orthopaedics continues its return to progress, with income rising 3.5% on account of new merchandise in hips and stronger demand in knees.

The corporate introduced beforehand that it plans to separate its orthopedics enterprise right into a standalone firm referred to as “DePuy Synthes” inside the subsequent 18 to 24 months.

Johnson & Johnson supplied steering for 2026 as effectively with the corporate anticipating adjusted earnings-per-share in a spread of $11.28 to $11.48 for the yr.

We anticipate 6% annual earnings-per-share progress for J&J over the following 5 years.

Aggressive Benefits & Recession Performance

Johnson & Johnson’s most essential aggressive benefit is innovation, which has fueled its wonderful progress over the previous 130+ years.

Its robust money move permits it to spend closely on analysis and growth. R&D is essential for a well being care firm as a result of it gives product innovation.

R&D can also be vital to remain forward of the “patent cliff”. Patent expirations may cause blockbuster medication to deteriorate quickly, as soon as a flood of competitors enters the market.

J&J’s aggressive R&D investments have resulted in product innovation and a strong pharmaceutical pipeline, which is able to assist produce progress for years to come back.

And, J&J’s wonderful steadiness sheet gives a aggressive benefit. It’s one in every of solely two U.S. corporations with an ‘AAA’ credit standing from Commonplace & Poor’s, together with Microsoft (MSFT).

J&J’s model management and constant profitability allowed the corporate to navigate the Nice Recession very effectively. Earnings-per-share throughout the Nice Recession are under:

• 2007 earnings-per-share of $4.15
• 2008 earnings-per-share of $4.57 (10% improve)
• 2009 earnings-per-share of $4.63 (1% improve)
• 2010 earnings-per-share of $4.76 (3% improve)

As you possibly can see, the corporate elevated earnings in every year of the recession. This helped it proceed elevating its dividend every year, despite the fact that the U.S. was going by way of a steep financial downturn.

J&J additionally remained extremely worthwhile and elevated its dividend once more in 2020, when the worldwide economic system was severely impacted by the coronavirus pandemic.

Traders might be moderately assured that the corporate will improve its dividend every year shifting ahead.

Valuation & Anticipated Returns

We anticipate adjusted earnings-per-share of $11.38 for 2026, leading to a ahead price-to-earnings ratio of 19.5. Our truthful worth estimate for J&J inventory is a P/E ratio of 17, which means the inventory is barely overvalued.

A declining P/E a number of might scale back annual returns by 2.7% per yr over the following 5 years.

In the meantime, future returns might be fueled by earnings progress and dividends. We anticipate the corporate to develop EPS by 6% per yr by way of 2031.

As well as, Johnson & Johnson has one of many longest dividend progress streaks available in the market and continues to extend its dividend yearly.

It has elevated its dividend for over 63 consecutive years. JNJ shares yield 2.3% right this moment.

Total, we anticipate that J&J can generate a complete annual return of 5.5% per yr over the following 5 years.

Closing Ideas

J&J has greater than six many years of consecutive dividend will increase underneath its belt. There are only a few certainties within the inventory market, however one in every of them is that J&J will improve its dividend every year.

The corporate has loads of future progress, because of a robust pipeline and its current acquisitions.

J&J has a long-term progress outlook and a market-beating dividend. It ought to have little bother elevating its dividend every year for a few years to come back.

In consequence, it’s a high-quality dividend progress inventory to purchase and maintain for the long term.

Moreover, the next Certain Dividend databases comprise essentially the most dependable dividend growers in our funding universe:

• The Dividend Champions: Dividend shares with 25+ years of dividend will increase, together with these that won’t qualify as Dividend Aristocrats
• The Dividend Kings: thought-about to be the final word dividend progress shares, the Dividend Kings listing is comprised of shares with 50+ years of consecutive dividend will increase

For those who’re on the lookout for shares with distinctive dividend traits, take into account the next Certain Dividend databases: