Analysis of Strong Dividend Stocks: Johnson & Johnson and Medtronic

Written by Emily J. Thompson, Senior Investment Analyst

Source: Fool

Updated: 1d ago

0mins

JNJ-0.56%

MDT-1.21%

Should l Buy JNJ?

Source: Fool

Dividend Growth Performance: Johnson & Johnson (JNJ) extended its dividend growth streak to 63 years in 2025 with a 4.8% increase, boasting a 2.2% dividend yield that is nearly double the S&P 500, showcasing its exceptional performance in dividend growth and enhancing investor confidence.
Financial Health: Last year, Johnson & Johnson generated $20 billion in free cash flow, easily covering its $12.4 billion in dividend payouts, and holds a AAA credit rating, ensuring its ability to maintain dividend payments and stability for future investments.
R&D Investment: Johnson & Johnson invested $14.7 billion in R&D and completed a $14.6 billion acquisition of Intra-Cellular Therapies, solidifying its leadership in neuroscience, which will further drive its earnings and dividend growth.
Medtronic's Dividend Stability: Medtronic (MDT) achieved its 48th consecutive dividend increase in fiscal year 2025 with a 2.8% yield, supported by $5.2 billion in free cash flow that comfortably covers $3.6 billion in dividends, reflecting its strong financial position and growth potential.

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JNJ

$238.64+Infinity%1D

Analyst Views on JNJ

Wall Street analysts forecast JNJ stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for JNJ is 218.50 USD with a low forecast of 190.00 USD and a high forecast of 240.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

20 Analyst Rating

13 Buy

7 Hold

0 Sell

Moderate Buy

Current: 239.990

Low

190.00

Averages

218.50

High

240.00

Current: 239.990

Low

190.00

Averages

218.50

High

240.00

RBC Capital

Outperform

maintain

$240 -> $255

2026-02-03

Reason

RBC Capital

Price Target

$240 -> $255

AI Analysis

2026-02-03

maintain

Outperform

Reason

RBC Capital raised the firm's price target on Johnson & Johnson to $255 from $240 and keeps an Outperform rating on the shares. The company is unlikely to undo the key implications of the Daubert ruling, but with that said, the cases may drag on for years as JNJ litigates this case-by-case and year-by-year, and maintains a strong financial position with improving business fundamentals to help mitigate risks, the analyst tells investors in a research note.

BofA

analyst

Neutral

maintain

$221 -> $227

2026-01-30

Reason

BofA

analyst

Price Target

$221 -> $227

2026-01-30

maintain

Neutral

Reason

BofA raised the firm's price target on Johnson & Johnson to $227 from $221 and keeps a Neutral rating on the shares. The firm's raised target reflects a higher blended P/E multiple, which assumes a higher MedTech multiple on higher organic growth and a higher Pharma multiple given a defensive premium. A Daubert ruling in the talc MDL case could be issued in the next one to two months, notes the analyst, who says that although the outcome of any legal case, including any potential settlement or injunction, is "inherently unpredictable," the firm thinks talc risk should be manageable as even a mid-teens billion resolution cost is less than 3% of J&J's market cap.

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About JNJ

Johnson & Johnson and its subsidiaries are engaged in the research and development, manufacture, and sale of a range of products in the healthcare field. The Company’s segments include Innovative Medicine and MedTech. The Innovative Medicine segment is focused on various therapeutic areas, including immunology, infectious diseases, neuroscience, oncology, pulmonary hypertension, cardiovascular and metabolism. Its products include REMICADE (infliximab), SIMPONI (golimumab), SIMPONI ARIA (golimumab), STELARA (ustekinumab), TREMFYA (guselkumab), EDURANT (rilpivirine), and INVEGA SUSTENNA/XEPLION (paliperidone palmitate). The MedTech segment includes a portfolio of products used in cardiovascular, orthopedics, surgery, and vision categories. The Cardiovascular portfolio includes electrophysiology products to treat heart rhythm disorders and circulatory restoration products (Shockwave) for the treatment of calcified coronary artery disease (CAD) and peripheral artery disease (PAD).

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.

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3 hours agoNewsfilter

Event Schedule: Johnson & Johnson will present at the Barclays 28th Annual Global Healthcare Conference on March 10, 2026, with management participating in a Fireside Chat at 11:30 a.m. Eastern Time, showcasing the company's latest developments in the healthcare sector.
Live Webcast Information: The presentation will be accessible via Johnson & Johnson's Investor Relations website, ensuring global investors can receive real-time updates on the company's activities, thereby enhancing transparency and investor confidence.
Replay Availability: An archived version of the session will be available later that day, with the audio webcast replay expected to be accessible approximately 48 hours after the live event, allowing investors who missed the live session to catch up on key insights.
Media and Investor Contacts: Johnson & Johnson has provided contact emails for media and investor inquiries, ensuring timely access to information and responses to questions, which further promotes communication and engagement between the company and its investors.

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Optimistic Analyst Ratings: Johnson & Johnson stock carries a

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