The $100 Billion Pivot: Why Johnson & Johnson Is My Top Dividend King to Buy in 2026

2 hours ago 2

Prosper Junior Bakiny, The Motley Fool

Sat, April 11, 2026 astatine 10:50 AM CDT 4 min read

Investors are progressively disquieted astir a coming recession oregon a marketplace downturn, oregon both. The fears are understandable fixed caller geopolitical and macroeconomic developments, arsenic good arsenic the information that the Nasdaq Composite precocious dipped beneath correction territory. In this environment, it helps to put successful dependable dividend payers, arsenic they often person beardown businesses that tin withstand terrible economical challenges. It mightiness beryllium peculiarly utile to crook to Dividend Kings, a radical of companies that person raised their payouts for astatine slightest 50 years straight. Let's look into a Dividend King that is among my favorites to bargain close now: Johnson & Johnson (NYSE: JNJ). Here's much connected this healthcare leader.

Doctor talking to patient.

Image source: Getty Images.

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Johnson & Johnson has encountered its stock of troubles successful caller years. Let's concisely spell done the database and sanction immoderate of them. The institution is inactive dealing with thousands of lawsuits from plaintiffs who allege that its talc-based products gave them cancer. And worse, the claims are that the healthcare elephantine knew of the risks and did thing to remedy the situation. Johnson & Johnson has besides faced patent cliffs. Just past year, it mislaid patent exclusivity for Stelara, an immunosuppressant, successful the U.S, aft the therapy had suffered the aforesaid destiny successful Europe successful 2024.

Stelara deed highest income of $10.9 cardinal successful 2023, which accounted for astir 13% of the company's top-line that twelvemonth -- that's a meaningful amount. The nonaccomplishment of patent exclusivity for a maturation operator of this caliber tin beryllium a superior situation for immoderate drugmaker. Then determination is the information that Johnson & Johnson is facing government-imposed cause terms negotiations successful the U.S. Several of its therapies person been targeted. Johnson & Johnson volition make little income from those products arsenic a result.

Even with these headwinds, Johnson & Johnson is performing well. Last year, the company's nett income grew 6% twelvemonth implicit twelvemonth to $94.2 billion, portion its adjusted net per stock roseate 8.1% to $10.79. Johnson & Johnson is projecting that its gross volition ascent to astir $100.5 cardinal astatine the midpoint successful 2026, which would correspond a twelvemonth implicit twelvemonth summation of 6.7%. Notably, this volition people lone the 2nd clip a biopharma institution has achieved $100 cardinal successful yearly revenue. That would beryllium awesome adjacent if Johnson & Johnson weren't dealing with each those challenges.

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