J&J: Still Kicking, Surprisingly

My Aunt Carol, a woman who considers clipping coupons a competitive sport, recently asked me about Johnson & Johnson. Not for medical advice, mind you. She wanted to know if it was “still a good, solid thing.” I tried to explain the nuances of pharmaceutical revenue streams, patent cliffs, and Medicare negotiations. She mostly glazed over and asked if they still made Band-Aids. Which, honestly, is a perfectly valid question. It’s comforting, isn’t it? Something reliably, stubbornly…there.

J&J (JNJ 0.02%), the company, is a bit like that slightly eccentric neighbor who’s been meticulously tending their garden for decades. You might not understand why they’re so obsessed with petunias, but you have to admire the dedication. They’re approaching a milestone – $100 billion in annual sales. It feels…significant. Not in a world-altering way, but in a “they’ve managed to avoid complete disaster for another year” kind of way. Only one other biopharma company has hit that mark, and that was Pfizer, riding the wave of pandemic panic. J&J’s doing it the old-fashioned way: slowly, steadily, and with a portfolio diverse enough to make a venture capitalist weep.

They’re projecting around $100-101 billion for 2026, which, if you’re keeping score, is a 6.7% jump. It’s not going to make anyone a millionaire overnight, but it’s enough to make me reconsider my Aunt Carol’s investment strategy. She’s usually right about these things, in a way that’s both infuriating and strangely insightful.

The interesting thing is, they’re achieving this despite losing exclusivity on Stelara, a big immunology drug, and facing Medicare price negotiations. Three of their drugs are in the government’s crosshairs. It’s like watching a seasoned boxer take a few punches and just keep moving. Xarelto, an anticoagulant, is still performing well, which is reassuring. I’m not sure why people need so much help preventing blood clots, but apparently, they do.

What really gets my attention, though, is their dividend history. They’re a “Dividend King,” which sounds like a particularly pompous board game, but actually means they’ve increased their payout for 63 consecutive years. Sixty-three years! My marriage hasn’t lasted that long. It’s a level of consistency that’s almost unsettling. It suggests a certain…lack of imagination. But also, a healthy respect for shareholders. And a deep aversion to rocking the boat.

I’m not suggesting you mortgage your house and buy J&J stock. But for a company facing headwinds – patent expirations, government price controls, the general existential dread of the pharmaceutical industry – they’re doing remarkably well. It’s not glamorous. It’s not disruptive. It’s just…solid. Like a good pair of sensible shoes. Or my Aunt Carol’s unwavering faith in couponing. And sometimes, that’s exactly what you need.

2026-01-31 06:22

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