This 2.4%-Yielding Dividend King Remains As Healthy As Ever

Core Insights - Johnson & Johnson has demonstrated strong financial performance, achieving $94.2 billion in sales for the year, a 6% increase from the previous year, and $26.2 billion in adjusted net earnings, reflecting an over 8% increase [3] - The company maintains a robust dividend yield of 2.4%, significantly higher than the S&P 500's yield of 1.2%, and has a history of increasing dividends for 63 consecutive years, qualifying it as a Dividend King [2][4] Financial Performance - Johnson & Johnson reported $19.7 billion in free cash flow, which comfortably covered its $12.4 billion in dividend payments, allowing the company to maintain a healthy balance sheet [4] - The company ended the year with $20 billion in cash and marketable securities against $48 billion in debt, resulting in a net debt of approximately $28 billion, which is manageable given its market capitalization of over $520 billion [4] Future Growth Prospects - The company anticipates sales growth of over 6% in 2026, projecting to exceed $100 billion in sales, alongside adjusted earnings-per-share growth of 6% to 8% [6] - Johnson & Johnson's significant investment in research and development, totaling $14.7 billion last year, supports its ability to deliver innovative medical technologies and medicines [7] - Recent acquisitions, including the $14.6 billion purchase of Intra-Cellular Therapies and the $3.1 billion acquisition of Halda Therapies, are expected to enhance growth and expand its healthcare solutions [7] Dividend Stability - The company's strong cash flow and solid balance sheet indicate that it can continue to provide a steadily rising dividend payout in the future, reinforcing its status as a reliable dividend stock [8]