This "Boring" Dividend King Is Quietly Turning Into a Growth Machine

By Leo Sun – Apr 16, 2026 at 3:28PM ESTKey PointsJ&J’s stock has rallied over the past 12 months.It’s a solid safe-haven stock, but it could have more upside than its peers.Johnson & Johnson (JNJ 1.73%) has raised its dividend annually for 64 consecutive years. That makes it a Dividend King, the elite title given to stocks that have raised their payouts for at least 50 straight years, but it's often considered a boring, defensive play. Yet over the past 12 months, J&J's stock has rallied more than 50%. Image source: Getty Images. Why did J&J's stock rally? J&J streamlined its operations by divesting its slower-growth businesses over the past few years. Today, it operates two core businesses: its Innovative Medicine segment, which sells its pharmaceutical products; and its MedTech segment, which sells medical devices. Most of its revenue and growth comes from its Innovative Medicine segment, which sells higher-margin, patent-protected drugs for cancer, autoimmune diseases, cardiopulmonary conditions, and neurological disorders. Over the next few years, J&J plans to expand its newer drugs -- including Tremfya for autoimmune disorders and Icotye for psoriasis -- to offset its loss of exclusivity for Stelara (its multi-billion-dollar psoriasis drug) in early 2025. J&J also still has a deep bench of potential blockbuster drugs, and its MedTech business should grow steadily to serve the aging population. Analysts expect J&J's EPS to decline 15% in 2026 as it absorbs the loss from Stelara, recognizes some on-time accounting expenses, and incurs higher expenses on its new drug launches. But they expect its EPS to grow 11% in 2027 and 7% in 2028 as it laps those non-recurring charges and grows its core businesses again. J&J's stock still looks reasonably valued at 26 times this year's earnings; it pays a forward yield of 2.3%, and it should continue to grow faster as a streamlined company. Therefore, this Dividend King might have more upside than some of its dusty old peers.Read NextApr 16, 2026 •By James Halley3 Healthcare Stocks That Have Held Up in Every Market DownturnApr 15, 2026 •By Jason HallDividend Kings of 2026Apr 15, 2026 •By Matt DiLallo5 Best High Dividend Mutual Funds to Buy in 2026Apr 13, 2026 •By Keith NoonanBest Blue Chip Stocks to Buy in 2026: Should You Invest?Apr 12, 2026 •By Jack DelaneyBetter Buy Right Now: Johnson & Johnson Vs. PfizerApr 11, 2026 •By Prosper Junior BakinyThe $100 Billion Pivot: Why Johnson & Johnson Is My Top Dividend King to Buy in 2026About the AuthorLeo Sun is a contributing Motley Fool stock market analyst who has worked with the company since 2013, covering technology, consumer goods, industrial, and financial sectors. He became a self-made millionaire by age 40 through long-term investing, crediting lessons from Warren Buffett and Peter Lynch. Leo is a regular guest on CNBC Asia providing stock analysis on Chinese technology companies, including Tencent, Baidu, and Alibaba. He previously wrote for InvestorGuide and holds a bachelor’s degree in English from the University of Texas at Austin.TMFSunLionX@TMFSunLionStocks MentionedJohnson & JohnsonNYSE: JNJ$234.54(-1.73%)-$4.13*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.