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Johnson & Johnson Has Dividend Royalty Status. Does That Make It a Buy?

Johnson & Johnson just logged its 64th straight year of dividend growth, but biosimilar threats, a MedTech slowdown, and lingering talc litigation raise a real question about whether that streak justifies buying the stock right now.

By Chris Lange

Published October 7, 2026, 9:30am ET · 3 min read

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A slightly angled close-up of a white outdoor sign for Johnson & Johnson, featuring the company's name in red script and 'MEDICAL DEVICES COMPANIES' in gray text below. A red horizontal line runs across the bottom of the sign. Bright sunlight flares from behind trees on the left against a clear blue sky, with blurry building structures visible in the background. — The distinctive Johnson & Johnson sign marks the presence of the medical devices and pharmaceutical giant. The company's consistent brand recognition aligns with its impressive 64-year streak of dividend increases. © Mario Tama / Getty Images News via Getty Images

Johnson & Johnson (NYSE:JNJ | JNJ Price Prediction) raised its quarterly dividend 3.1% to $1.34 per share this year, marking its 64th consecutive year of dividend growth. The quarterly rate rose from $1.13 to $1.19 in 2023, then $1.24, $1.30 and $1.34. At $253.88 the stock yields just 2.05%.

Growth Is Outrunning the Stelara Cliff

Biosimilar competition cut Stelara sales by 55.7% in the second quarter. Worldwide sales reached $25.3 billion, with J&J growing double digits excluding Stelara. Tremfya, set to replace it, brought in $2 billion, up 71%. Darzalex sales passed $4 billion, up 17.6%.

“We are not dependent on one or two products. We have a broad, durable portfolio that has 28 platforms, each generating more than $1 billion in annual revenue.”

AbbVie (NYSE:ABBV) is replacing Humira similarly. Its Skyrizi grew 24.4% to $5.505 billion, while Humira fell 35.9%. J&J’s replacement franchise is growing faster and includes Icotyde, an oral psoriasis drug that collected more than 18,000 prescriptions in a launch ahead of projections.

Pfizer (NYSE:PFE) shows what happens when the replacement pipeline falls behind. It yields 6.25% but guides 2026 revenue to $59.5 billion to $62.5 billion with roughly $1.5 billion in generic and biosimilar pressures. That high yield pays investors for a flat top line.

MedTech Is Where the Weakness Shows

Since the consumer-health split, J&J reports two divisions. Innovative Medicine posted $16.4 billion in sales, and MedTech posted $8.9 billion with only 3.6% operational growth. Abiomed fell 2%, and inventory issues in China cut electrophysiology growth by about 400 basis points. Shockwave grew 14.7%. Management remains confident about Abiomed’s heart pump:

“We remain confident in the long-term potential for Impella.”

The company also plans to spin off DePuy Synthes, its orthopaedics business, by mid-2027. That will leave a smaller device unit weighted more toward faster-growing products.

Litigation Costs Are Now Visible

In July, J&J agreed to a talc settlement that could resolve tens of thousands of lawsuits. Litigation charges totaled $854 million in the fourth quarter of 2025 and $330 million in the first quarter of 2026. Second-quarter net other expense reached $331 million. In August, Reuters reported that three scientists defeated J&J’s defamation suit over talc research, with J&J saying it would appeal.

Valuation Has Reset After the Pullback

The stock fell 7.76% over the past month after a one-year gain of 37.61%. It trades at a forward P/E of 21, with the analyst target at $279.50. Analysts rate it 5 strong buys and 11 buys against one sell. Management expects full-year free cash flow to approach $21 billion and raised adjusted operational EPS guidance to $11.50 to $11.65. CFO Joe Wolk repeated the payout commitment:

“We also remain committed to returning capital directly to shareholders, primarily through our dividend.”

Verdict: The business fundamentals make J&J worth a closer look at today’s price. Oncology and immunology growth offset the Stelara decline, free cash flow guidance supports the dividend, and litigation risk now has a number attached. MedTech is the weak link. Watch Abiomed’s recovery and the Enterprise Business Review on December 8, 2026.

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Chris Lange

Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.

His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.

When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.

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