2 Healthcare Stocks That Can Diversify a Tech-Heavy Portfolio
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By Prosper Junior Bakiny – Jan 9, 2026 at 11:45AM ESTKey PointsAbbVie and Johnson & Johnson have resilient, noncyclical businesses. They are also outstanding dividend payers.We’re bullish on these 10 stocks ›NYSE: ABBVAbbVieMarket Cap$396BToday's Changeangle-down(-0.87%) $1.96Current Price$222.17Price as of January 9, 2026 at 12:47 PM ETAdd some stability to your holdings with these healthcare giants.The technology sector is an excellent place to find high-growth stocks with promising prospects. However, it is a cyclical sector that doesn't perform as well when the economy tanks. It's critical for investors to diversify their tech holdings, perhaps by putting their money into more defensive industries that behave differently during downturns. One such industry is healthcare. And here are two healthcare stocks to consider for diversification, if you are heavily invested in tech stocks: AbbVie (ABBV 0.87%) and Johnson & Johnson (JNJ 0.09%). Image source: Getty Images. Recession-resistant businesses AbbVie and Johnson & Johnson are both pharmaceutical leaders. Between them, they develop and market drugs across several therapeutic areas, including oncology, neuroscience, immunology, and more. Many of their products address serious, life-threatening, or chronic conditions -- not the type of thing people will cut first when they need to save money. Even as demand for tech-related products and services fluctuates significantly, theirs remains fairly stable. That's why AbbVie and Johnson & Johnson tend to perform comparatively well in recessions. Now, none of that means they won't have their own problems. Patent cliffs, competition, and legal troubles (as with Johnson & Johnson's lawsuits related to its talc-based products) can all hinder their progress. ExpandNYSE: ABBVAbbVieToday's Change(-0.87%) $-1.96Current Price$222.17Key Data PointsMarket Cap$396BDay's Range$220.14 - $225.0352wk Range$164.39 - $244.81Volume90KAvg Vol5.7MGross Margin69.68%Dividend Yield2.93% However, AbbVie and Johnson & Johnson have demonstrated their ability to develop newer and better products to circumvent patent cliffs and generate growing revenue and earnings despite competition, and they have achieved this even in recent years. AbbVie overcame the loss of patent exclusivity for Humira, while Johnson & Johnson is performing well despite losing patent protection for Stelara. Johnson & Johnson has another quality investors should take note of.Advertisement It boasts a higher credit rating than the U.S. government and the highest overall. While some may worry about the legal headwinds it has faced in recent years, Johnson & Johnson's rock-solid balance sheet means it is unlikely to hit serious financial troubles even in a severe economic downturn. ExpandNYSE: JNJJohnson & JohnsonToday's Change(-0.09%) $-0.18Current Price$205.57Key Data PointsMarket Cap$496BDay's Range$204.53 - $206.6752wk Range$140.68 - $215.19Volume126KAvg Vol8.5MGross Margin68.27%Dividend Yield2.50% Impressive dividend programs Here's something else that makes AbbVie and Johnson & Johnson great options to diversify a tech-heavy portfolio: their outstanding dividend track records. When accounting for the time it spent as a division of Abbott Laboratories, AbbVie has increased its dividend payouts for 54 consecutive years, while Johnson & Johnson's parallel streak stands at 63. That means both are Dividend Kings, or companies that have increased their dividends for at least 50 consecutive years. That is a great sign of a business that can navigate any challenge. And that's another reason these are excellent stocks to buy for diversification purposes, especially as the regular, growing payout can help smooth out market losses in a downturn.Read NextJan 3, 2026 •By Prosper Junior BakinyBuying This Healthcare Stock Could Make You a Millionaire RetireeDec 30, 2025 •By Patrick Sanders3 No-Brainer Dividend Stocks to Buy Right NowDec 27, 2025 •By Prosper Junior BakinyIs AbbVie a Buy, Sell, or Hold in 2026?Dec 18, 2025 •By Reuben Gregg BrewerIs AbbVie a Millionaire Maker?Dec 18, 2025 •By David Jagielski, CPAWorried About the Stock Market in 2026? These 3 Stocks Did Well During the Last Bear Market.Dec 13, 2025 •By Prosper Junior BakinyMy Top 3 Healthcare Stocks to Buy in 2026About the AuthorProsper Junior Bakiny is a contributing Motley Fool healthcare analyst covering biotechnology, pharmaceuticals, and healthcare stocks.
Before The Motley Fool, Prosper wrote about investing topics ranging from stock market news to private equity for various companies. He holds a master’s degree in corporate finance from the University of Maryland Global Campus.TMFPBakinyStocks MentionedAbbVieNYSE: ABBV$222.17 (0.01%) $1.96Johnson & JohnsonNYSE: JNJ$205.57 (0.00%) $0.18*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.Advertisement