Could Buying This Dividend Pharma Stock Today Set You Up for Life?

By Reuben Gregg Brewer – Apr 9, 2026 at 8:15PM ESTKey PointsJohnson & Johnson has an incredible dividend-increase streak spanning more than 60 years.The company's business is diversified beyond drugs, providing more avenues for growth and increased business stability.If you are a retiree looking to supplement your Social Security checks with income you derive from dividend stocks, you'll want to get to know Johnson & Johnson (JNJ 0.07%). It has a dividend record that no other healthcare company can match, suggesting that it could set you up for a lifetime of reliable income. Here's what you need to know. Johnson & Johnson's dividend record J&J is a Dividend King. There are only four healthcare companies that make that elite grouping, which requires at least 50 consecutive annual dividend increases to join. And of the four, one is AbbVie (ABBV +0.44%), a spin-off that basically "shares" its streak with its former parent Abbot (ABT 0.80%). J&J's streak is the longest at 63 years, which is nine years longer than the 54 years of the other four healthcare Dividend Kings. Image source: Getty Images. You can't build a record like that by accident. J&J has a strong business plan that is executed well in both good and bad markets. That said, until recently, the business included a consumer products group. That operation was spun off as Kenvue (KVUE +0.52%), which has since agreed to be acquired by Kimberly Clark (KMB +0.96%). At this point, J&J is a pure-play healthcare business. Johnson & Johnson is still diversified While J&J's dividend streak sets it apart from other healthcare companies, including pharmaceutical makers, it remains diversified. It is not only one of the world's largest drug makers but also one of the largest medical device makers. Having a medical device business is a huge benefit for long-term investors, as more reliable cash flows from this division help balance out the patent-expiration risks inherent to the drug industry. ExpandNYSE: JNJJohnson & JohnsonToday's Change(-0.07%) $-0.16Current Price$241.14Key Data PointsMarket Cap$581BDay's Range$240.25 - $244.2252wk Range$146.12 - $251.71Volume217KAvg Vol8.8MGross Margin67.97%Dividend Yield2.15% That said, the company isn't done streamlining its operations, with plans to spin off its orthopedics business in 2027. The separation will focus J&J's medical device business on the cardiovascular, surgery, and vision sectors. Still, its drug business (nearly two-thirds of revenues) will continue to be the driving force. It is also important to note that the company's credit rating is AAA. That's the highest score awarded, which means the dividend is on very solid financial ground. Not the largest yield, but still attractive If there is one problem with J&J as a dividend stock, it is that the yield is roughly 2.2%. While that's twice the S&P 500 index's (^GSPC +0.62%) 1.1% yield, it is still below the 4% that many dividend investors target. However, if you are looking for a reliable dividend from a drug company, this diversified healthcare giant stands above all of your other options in very important ways.Read NextApr 6, 2026 •By Lyle DalyThe Largest Healthcare Companies by Market Cap in April 2026Apr 4, 2026 •By Lee SamahaBetter Healthcare Stock to Own in a Recession: Defensive or Growth?Apr 2, 2026 •By Matt DiLalloBest Blue Chip Dividend Stocks to Buy and Hold in 2026Apr 2, 2026 •By James HalleyThis Healthcare Stock Barely Flinches During Market Sell-OffsApr 2, 2026 •By Keith SpeightsStagflation Fears Are Back: These 3 Stocks Can Help You Ride Out the StormApr 1, 2026 •By Lyle DalyThe Largest Companies by Market Cap in April 2026About the AuthorReuben Gregg Brewer is a contributing Motley Fool stock market analyst covering energy, utilities, REITs, and consumer staples. He is the former director of research at Value Line Publishing, where he rose from mutual fund analyst to equity analyst before leading all research operations. Reuben holds a bachelor’s degree in psychology from SUNY Purchase, a master’s in social work from Columbia University, and an MBA from Regis University. He has been featured as a financial expert on CNBC and in the Financial Times, Barron’s, and InvestmentNews.TMFReubenGBrewerStocks MentionedJohnson & JohnsonNYSE: JNJ$241.14(-0.07%)-$0.16S&P 500 IndexSNPINDEX: ^GSPC$6,824.66(+0.62%)+$41.85KenvueNYSE: KVUE$17.43(+0.52%)+$0.09*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.