Johnson & Johnson: The more established contender
Johnson & Johnson is a popular company with dividend growth investors. It’s a Dividend King, which means it has increased its dividend payouts for 50 or more consecutive years. In this particular case, 2026 marks the company’s 64th consecutive annual dividend increase, raising payouts to $5.36 per per year, which translates to a 2% forward yield.
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NYSE: JNJ
Johnson & Johnson
Premium Feature
Moneyball Superscore
79/100
Today’s Change
(1.10%) $2.94
Current Price
$270.22
Key Data Points
Market Cap
$644BMarket cap calculated using publicly traded s outstanding only. Does not include unlisted, private, or dual-class non-traded s. Implied market cap may vary.
Day’s Range
$267.11 – $270.87
52wk Range
$173.33 – $281.07
Volume
6.6M
Avg Vol
7.6M
Gross Margin
68.03%
Dividend Yield
1.98%
Since spinning off its consumer health division (spoiler alert: it’s Kenvue), J&J is now a pure-play pharmaceutical and medical technology business. It’s now focusing on higher-growth, higher-margin, and higher-risk areas such as oncology, immunology, and surgical devices.
But how high-risk, exactly?
So far, litigation is one of the company’s biggest concerns — namely, the long-running claims that its talc-based baby powder caused ovarian cancer and mesothelioma. The ovarian cancer claims have a proposed $5.5 billion settlement pending a 95% participation threshold, while mesothelioma cases are still being litigated individually. J&J also had about $3.7 billion reserved for talc-related liabilities as of the second quarter of 2026.
So, the reliable dividend payer carries some serious legal baggage. Settlements could eat into the cash it would otherwise put toward dividends, research and development, or acquisitions.
Meanwhile, the stock trades at around a 31 price-to-earnings ratio, making it appear more expensive than the sector average of 25. However, a consensus among 25 analysts still rates the stock a “Moderate Buy,” with a $320 high target price. Wall Street thinks there’s still some upside left.
Kenvue faces uncertainty ahead of the Kimberly-Clark merger
Now, on to the J&J spinoff.
Kenvue typically appears as a Dividend King on many lists because, if we count its years as part of J&J, 64 years of consecutive increases passes the test. Right now, the company pays $0.84 per per year, resulting in a much higher 4.71% forward yield. That said, the stock itself is also cheaper at about 21x earnings.
UnJ&J, Wall Street analysts rate Kenvue a consensus “Hold,” with a mean target price set at $19. Part of the tepid outlook stems from the business itself. The company owns mature, slow-growing consumer staple brands Tylenol, Band-Aid, and Listerine. Sure, every household needs them, but once everyday demand matures, revenue growth starts to plateau.
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NYSE: KVUE
Kenvue
Premium Feature
Moneyball Superscore
50/100
Today’s Change
(0.22%) $0.04
Current Price
$17.87
Key Data Points
Market Cap
$34BMarket cap calculated using publicly traded s outstanding only. Does not include unlisted, private, or dual-class non-traded s. Implied market cap may vary.
Day’s Range
$17.78 – $18.10
52wk Range
$14.02 – $20.13
Volume
23.5M
Avg Vol
23M
Gross Margin
58.36%
Dividend Yield
4.67%
The bigger reason for the mediocre rating today is that Kenvue may not exist as a stand-alone dividend stock for much longer. In November 2025, Kimberly-Clark agreed to acquire Kenvue in a cash-and-stock deal that valued Kenvue at around $48.7 billion. That changes the story, since buying Kenvue now means buying into the proposed acquisition early, creating uncertainty about the combined company’s financials, business risks, and the dividend’s future.
Johnson & Johnson wins as the better buy-and-hold pick
Owning Kenvue is more of a waiting game while the acquisition is completed and, by extension, a bet on Kimberly-Clark’s dividend. On the other hand, J&J’s dividend history speaks for itself, and despite having billions in legal liabilities on the books, the company still has the cash flow and a sufficiently diverse business model to continue increasing the dividend. So for true buy-and-hold dividend investors, J&J wins, at least for now.
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About the Author
Rick is a Wall Street Journal best-selling author with over 20 years of experience trading stocks and options. The most authoritative publications, including Good Morning America, Washington Post, Yahoo Finance, MSN, Business Insider, NBC, FOX, CBS, and ABC News, cover his work. His passion is business, and he works tirelessly to deliver content in an easy-to-understand manner. In 2018, Rick wrote The Financially Independent Millennial to inspire his readers with his story about becoming financially independent at age 35 despite not learning about money when he was younger. His books are easy to read and often refer to key points that “He would tell his younger self.” When not thinking about business, Rick writes (mainly about cruise ship travel) for his travel blog and is an enthusiast of fast cars, technology, & cooking.
Stocks Mentioned
Johnson & Johnson
NYSE: JNJ
$270.22
(+1.10%)+$2.94
Motley Fool Stock Advisor’s Latest Pick
—% Avg Return
Kimberly-Clark
NASDAQ: KMB
$98.19
(+0.09%)+$0.09
Kenvue
NYSE: KVUE
$17.87
(+0.22%)+$0.04
*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.
Sumber Artikel:
Fool.com
