Is This Dividend King a Screaming Buy?

Johnson & Johnson (NYSE: JNJ) has been in business since 1886. The company has experienced significant success along the way. However, its share price has never been higher than the levels already achieved in the first few weeks of 2026.

CEO Joaquin Duato said in J&J's fourth-quarter update earlier this week that 2025 "kicked off a new era of accelerated growth" for the company. Is the healthcare stock a screaming buy now?

Plenty of positives

Make no mistake: Johnson & Johnson offers plenty of positives for investors. We can put the company's dividend near the top of the list.

J&J is a member of the elite group known as the Dividend Kings. To join the club, a company must increase its dividend for at least 50 consecutive years. J&J has increased its dividend for an impressive 63 years. Its forward dividend yield is currently 2.4%.

The company also appears to be navigating an expanding patent cliff quite well. Autoimmune disease Stelara already faces biosimilar competition. Johnson & Johnson anticipates generic competition for Opsumit in the U.S. and in the second half of 2026 and for Simponi in the E.U. in the first half of the year and potentially in the U.S. in the second half of the year. Despite these challenges, J&J's projects overall sales growth of 6.7% and adjusted earnings-per-share growth of 6.9% in 2026 at the midpoint of its guidance ranges.

Johnson & Johnson ended 2025 with 28 platforms generating at least $1 billion in annual revenue, including two new blockbusters – the Shockwave intravascular lithotripsy device and personalized cancer immunotherapy Carvykti.

Thirteen of its brands are growing by double-digit percentages. The healthcare leader hopes to receive regulatory approvals for five drugs this year and file for approvals of two others. It also plans to report results from at least 10 Phase 3 clinical studies.

Image source: Johnson & Johnson.

No screaming, but some buying

Are all of those positives enough to make Johnson & Johnson stock a screaming buy? Not really. J&J's growth is good but not spectacular. It's a similar story with the stock's valuation. Shares trade at a forward price-to-earnings ratio of 19. The company isn't entirely out of the woods yet with its losses of exclusivity, either.

However, I still view Johnson & Johnson as an appealing stock for some investors. Risk-averse investors should like the company's longevity and stability. Income investors should appreciate its dividends and its sterling track record of dividend increases. If you're in one of these two categories, J&J won't be a screaming buy – but it could still be a buy.

Keith Speights has no position in any of the stocks mentioned. The Motley Fool recommends Johnson & Johnson. The Motley Fool has a disclosure policy.