When markets are volatile and clouded by uncertainty, investors look for stability. And you can find that stability in dividend stocks, especially Dividend Kings, which have a track record of paying and increasing dividends consistently for more than 50 years. Johnson & Johnson (JNJ), of the world’s largest and most diversified health care companies, is one such Dividend King.
Although J&J is not a high-flying growth stock, it quietly outpaced the market last year. JNJ stock soared 43.7%, compared to the market’s overall gain of 16.6%. One month into 2026, the stock is up more than 10%, surpassing 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 don’t already.
In 2023, Johnson & Johnson made a bold decision to spin off its consumer division — which was comprised of well-known, everyday brands such as Tylenol, Listerine, Neutrogena, and others — into a separate company called Kenvue (KVUE). The goal was to establish a pure-play health care innovation business concentrated solely on drugs and medical devices. This decision has worked well. Its business today operates in two major segments:
-
Innovative Medicine (Pharmaceuticals) focuses on the development of prescription drugs in oncology, immunology, neurology, and cardiovascular and pulmonary diseases.
-
MedTech (Medical Devices) refers to medical technologies utilized by hospitals and surgeons.
The Innovative Medicine segment generates the majority of J&J’s revenue and drives most of its growth. In the fourth quarter, the segment generated $15.7 billion in revenue, an increase of 10% year-over-year. For the full year, the segment revenue increased by 6% to $60.4 billion. The company reported a 5.3% increase in worldwide sales of $94.2 billion, despite a significant headwind from the loss of exclusivity on Stelara. Adjusted diluted earnings per share rose 8.1% year over year to $10.79.
With 21% operational sales growth in 2025 and projected annual sales of over $50 billion by 2030, oncology continues to be one of the company’s biggest growth engines. Meanwhile, the MedTech segment’s 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 over 60 active clinical trials and multiple regulatory submissions planned, MedTech continues to provide a second major growth pillar alongside Pharmaceuticals.
