Johnson & Johnson: A Steady Investment with Strong Returns
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 22 2026
0mins
Should l Buy JNJ?
Source: Fool
- Dividend Growth Leader: Johnson & Johnson has raised its dividend for 63 consecutive years, starting in 1963, with a total increase of 73% over the past decade, paying out $12.4 billion in dividends in 2025, and maintaining a payout ratio of 46.3%, indicating room for future increases.
- Market-Beating Returns: The stock delivered over 60% total return in the past year, five times that of the S&P 500, with 2025 revenue rising 6% to $94.2 billion and EPS soaring 90.5% to $11.03, while 2026 revenue is projected between $100 billion and $101 billion.
- Future Investment Plans: Johnson & Johnson announced a $1 billion investment in a next-generation cell manufacturing facility outside Philadelphia, aiming to produce most advanced medicines in the U.S. by 2029, thereby reducing tariff costs, with a total investment plan of $55 billion in U.S. manufacturing and R&D.
- Sustained R&D Investment: In 2025, J&J spent $14.6 billion on R&D, boasting 28 programs with over $1 billion in sales, 51 therapies approved in its innovative medicine division, and 15 new product launches in its medtech division, ensuring long-term competitiveness.
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Analyst Views on JNJ
Wall Street analysts forecast JNJ stock price to fall
20 Analyst Rating
13 Buy
7 Hold
0 Sell
Moderate Buy
Current: 244.120
Low
190.00
Averages
218.50
High
240.00
Current: 244.120
Low
190.00
Averages
218.50
High
240.00
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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- Consistent Dividend Growth: The company has raised its dividend for 63 consecutive years, with the latest 4.8% increase bringing the quarterly payout to $1.30 per share, resulting in a current yield of approximately 2.1%, bolstering investor confidence in its stock.
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- Market Environment Impact: With the U.S. GDP growth rate slowing to just 0.7% in Q4 2025 and the OECD forecasting a 4% inflation rate, these economic conditions are not supportive of rising stock prices, prompting investors to shift towards more defensive investment strategies to mitigate market volatility.
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- Market Outlook Analysis: Although JEPQ offers a yield of 11.4%, in the context of a slowing economy and labor market, low-volatility stocks may provide better defensive characteristics, making them more suitable for the current uncertain market conditions.
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- Retail Sector Adaptation: While large retailers like Walmart have emerged relatively unscathed, smaller businesses have been severely impacted, with Home Depot aiming to limit purchases from any single country to 10% to reduce dependency and enhance supply chain flexibility.
- Automotive Industry Cost Surge: Automakers such as General Motors and Toyota are facing tariff impacts estimated at up to $9.5 billion, and although the Trump administration has taken steps to alleviate overlapping tariffs, overall costs remain significant, forcing companies to reassess their supply chain strategies.
- Pharmaceutical Sector Stability: Pharmaceutical companies have secured three-year tariff exemptions through pricing agreements with Trump, although new tariffs impose 100% on companies that do not reach agreements, the overall industry is still striving to increase investments in U.S. manufacturing.
See More
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- Tariff Policy Shift: The Trump administration is preparing to impose tariffs of up to 100% on branded drugs from companies that have not negotiated price reductions, potentially impacting major pharmaceutical firms like Eli Lilly, Pfizer, and Novo Nordisk, thereby increasing price volatility in the drug market.
- Manufacturing Incentives: Drugmakers can reduce or avoid tariffs by relocating production to the U.S. or negotiating deals with the administration, aiming to stimulate domestic manufacturing and potentially leading to a resurgence of investments in the pharmaceutical sector.
- Tariff Implementation Details: The draft proposal includes a 20% tariff for companies planning to onshore production, escalating to 100% in four years, which could significantly influence the long-term strategic positioning of the pharmaceutical industry.
- National Security Considerations: The tariff proposal stems from a Commerce Department investigation that identified certain pharmaceutical imports as a national security risk, highlighting the government's heightened focus on the security of drug supply chains.
See More
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- Consistent Dividend Growth: The company has raised its dividend for 63 consecutive years, with the latest 4.8% increase bringing the quarterly payout to $1.30 per share, resulting in a current yield of approximately 2.1%, bolstering investor confidence in its stock.
- Leading R&D Investment: Johnson & Johnson invested $14.6 billion in research and development last year, achieving 51 drug approvals and launching 15 new med-tech products, underscoring its leadership and innovation in the pharmaceutical sector.
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See More
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- Surge in Stagflation Searches: Google Trends indicates a 650% increase in searches for 'stagflation 2026' over the past three months, highlighting growing market concerns about economic stagnation and high inflation, prompting investors to reassess potential recession risks.
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- Energy Stocks Benefit: In a stagflation scenario, ExxonMobil (XOM), the largest energy company in the U.S., stands to gain as rising oil and gas prices boost its revenues and share price, making it a preferred safe haven for investors amid economic uncertainty.
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See More
