Johnson & Johnson (JNJ): A Cornerstone Among the Most Profitable Dividend Stocks

Johnson & Johnson (NYSE:JNJ) is included among the 13 Most Profitable Dividend Stocks to Buy Right Now.

Johnson & Johnson (NYSE:JNJ) is one of America’s most recognizable healthcare companies, with operations that now center on pharmaceuticals and medical devices. After spinning off its consumer health unit, which included familiar names like Tylenol, Neutrogena, and Listerine, into a separate company called Kenvue, the company narrowed its focus to pharmaceuticals and medical technology. These two areas now power the business, with 26 products or platforms each bringing in more than $1 billion a year, forming the bulk of its revenue and cash flow.

Johnson & Johnson (NYSE:JNJ) continues to bring in strong cash flows, much of which is poured back into research and development to keep growth on track. The rest goes toward shareholder returns. In 2024, J&J invested about $17 billion in R&D and paid $11.8 billion in dividends. The dividend is also its strength, which the company has already grown for 63 consecutive years. With a quarterly dividend of $1.30 per share, JNJ has a dividend yield of 2.77%, as of October 6.

In its pharmaceutical arm, J&J has its sights set on leading the oncology market, aiming for $50 billion in sales. Treatments like Darzalex and Carvykti are expected to drive that effort. The company’s $14.6 billion purchase of Intra-Cellular Therapies also added Caplyta, a growing antipsychotic drug, which it believes could eventually bring in $5 billion annually. On the medical technology front, innovation in robotic surgery and cardiovascular care remains central to its next phase of growth.

While we acknowledge the potential of JNJ as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.