Updated on January 27th, 2026 by Bob Ciura
Johnson & Johnson (JNJ) is a company that many investors are likely familiar with. J&J has been in operation for more than 130 years and has raised its dividend for over 60 years in a row.
It has one of the longest and most impressive histories of any dividend growth stock.
J&J is a long-standing member of the Dividend Aristocrats.
You can see a full downloadable list of all 69 Dividend Aristocrats (along with important financial metrics such as dividend yields and price-to-earnings ratios) by clicking the link below:
Disclaimer: Sure Dividend is not affiliated with S&P Global in any way. S&P Global owns and maintains The Dividend Aristocrats Index. The information in this article and downloadable spreadsheet is based on Sure Dividend’s own review, summary, and analysis of the S&P 500 Dividend Aristocrats ETF (NOBL) and other sources, and is meant to help individual investors better understand this ETF and the index upon which it is based. None of the information in this article or spreadsheet is official data from S&P Global. Consult S&P Global for official information.
Not only is Johnson & Johnson a Dividend Aristocrat, but it is also a Dividend King as well.
The Dividend Kings are an even more exclusive group of stocks, with 50+ years of consecutive dividend increases. There are just 57 companies that have achieved this accomplishment.
J&J has all of the qualities to look for in great dividend growth stocks. It has a dividend yield above the S&P 500 average, backed by a strong brand and highly profitable business model, with potential for long-term growth.
This article will discuss the quintessential Dividend Aristocrat that is Johnson & Johnson.
Business Overview
J&J is one of the largest companies in the world, but it started from humble beginnings. It was founded in 1886 by three brothers, Robert, James, and Edward Johnson.
In 1888, the three brothers published a healthcare manuscript titled “Modern Methods of Antiseptic Wound Treatment,” which quickly became the leading standard for antiseptic surgery techniques.
Over the following decades, the company steadily introduced new products to market. Soon, it was the leading manufacturer across several healthcare categories.
Today, J&J is a global healthcare giant. It has a market capitalization above $500 billion. J&J is a mega-cap stock, a term to describe stocks with market caps above $200 billion.
Growth Prospects
On January 21st, 2026, Johnson & Johnson released fourth quarter and full year results. For the quarter, revenue increased 9.3% to $24.6 billion, which was $440 million more than expected.
Adjusted earnings-per-share of $2.46 compared favorably to $2.04 and matched estimates. For the year, revenue grew 6% to $94.2 billion while adjusted earnings-per-share of $10.79 compared to $9.98 in 2024.
Revenue for Innovative Medicines grew 10% on a reported basis and 7.9% on an operational basis. Infectious Disease decreased 0.4% as ongoing strength in Edurant, which is used to treat HIV, was more than offset by weakness in the rest of the portfolio.
Oncology grew 21.9% due to increasing demand for Darzalex, which treats multiple myeloma, and continued high demand in several other products.
Revenue for MedTech grew 7.5% on a reported basis and 5.8% on an operational basis. Cardiovascular continues to produce excellent results, as sales were up 10.1% due to new products.
Sales for Surgery improved 3.7% as gains in biosurgery offset by competitive pressures in endocutters. Orthopaedics continues its return to growth, with revenue growing 3.5% due to new products in hips and stronger demand in knees.
The company announced previously that it plans to separate its orthopedics business into a standalone company called “DePuy Synthes” within the next 18 to 24 months.
Johnson & Johnson offered guidance for 2026 as well with the company expecting adjusted earnings-per-share in a range of $11.28 to $11.48 for the year.
We expect 6% annual earnings-per-share growth for J&J over the next five years.
Competitive Advantages & Recession Performance
Johnson & Johnson’s most important competitive advantage is innovation, which has fueled its amazing growth over the past 130+ years.
Its strong cash flow allows it to spend heavily on research and development. R&D is critical for a health care company because it provides product innovation.
R&D is also necessary to stay ahead of the “patent cliff”. Patent expirations can cause blockbuster drugs to deteriorate rapidly, once a flood of competition enters the market.
J&J’s aggressive R&D investments have resulted in product innovation and a robust pharmaceutical pipeline, which will help produce growth for years to come.
And, J&J’s excellent balance sheet provides a competitive advantage. It is one of only two U.S. companies with an ‘AAA’ credit rating from Standard & Poor’s, along with Microsoft (MSFT).
J&J’s brand leadership and consistent profitability allowed the company to navigate the Great Recession very well. Earnings-per-share during the Great Recession are below:
2007 earnings-per-share of $4.15
2008 earnings-per-share of $4.57 (10% increase)
2009 earnings-per-share of $4.63 (1% increase)
2010 earnings-per-share of $4.76 (3% increase)
As you can see, the company increased earnings in each year of the recession. This helped it continue raising its dividend each year, even though the U.S. was going through a steep economic downturn.
J&J also remained highly profitable and increased its dividend again in 2020, when the global economy was severely impacted by the coronavirus pandemic.
Investors can be reasonably confident that the company will increase its dividend each year moving forward.
Valuation & Expected Returns
We expect adjusted earnings-per-share of $11.38 for 2026, resulting in a forward price-to-earnings ratio of 19.5. Our fair value estimate for J&J stock is a P/E ratio of 17, which implies the stock is slightly overvalued.
A declining P/E multiple could reduce annual returns by 2.7% per year over the next five years.
Meanwhile, future returns will be fueled by earnings growth and dividends. We expect the company to grow EPS by 6% per year through 2031.
In addition, Johnson & Johnson has one of the longest dividend growth streaks in the market and continues to increase its dividend every year.
It has increased its dividend for over 63 consecutive years. JNJ shares yield 2.3% today.
Overall, we expect that J&J can generate a total annual return of 5.5% per year over the next five years.
Final Thoughts
J&J has more than six decades of consecutive dividend increases under its belt. There are very few certainties in the stock market, but one of them is that J&J will increase its dividend each year.
The company has plenty of future growth, thanks to a strong pipeline and its recent acquisitions.
J&J has a long-term growth outlook and a market-beating dividend. It should have little trouble raising its dividend each year for many years to come.
As a result, it is a high-quality dividend growth stock to buy and hold for the long run.
Additionally, the following Sure Dividend databases contain the most reliable dividend growers in our investment universe:
The Dividend Champions: Dividend stocks with 25+ years of dividend increases, including those that may not qualify as Dividend Aristocrats
The Dividend Kings: considered to be the ultimate dividend growth stocks, the Dividend Kings list is comprised of stocks with 50+ years of consecutive dividend increases
If you’re looking for stocks with unique dividend characteristics, consider the following Sure Dividend databases:
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