The Only Healthcare Stock I'd Buy and Never Sell Might Be Johnson & Johnson

Core Viewpoint - Johnson & Johnson is considered a stable investment option, providing steady income and strong total returns, making it a reliable choice for investors seeking long-term growth [1]. Group 1: Dividend Performance - Johnson & Johnson has raised its dividend for 63 consecutive years, qualifying it as a "Dividend King" [3]. - The company has achieved a total dividend increase of 73% over the past decade, with a recent quarterly payout increase of 4.8% to $1.30 per share, resulting in a yield of 2.1% [4]. - The payout ratio stands at 46.3%, indicating sufficient capacity for continued dividend increases, with $12.4 billion paid in dividends against $20 billion in free cash flow in 2025 [5]. Group 2: Financial Performance - Over the past year, Johnson & Johnson's total return exceeded 60%, significantly outpacing the S&P 500's return [7]. - The company reported a revenue increase of 6% to $94.2 billion and a remarkable 90.5% growth in earnings per share (EPS) to $11.03, with adjusted EPS rising by 8.1% to $10.79 [8]. Group 3: Future Growth and Innovation - Johnson & Johnson is investing $1 billion in a new cell manufacturing facility in Pennsylvania, aiming to enhance domestic production of advanced medicines [9]. - The company plans to allocate $55 billion towards U.S. manufacturing, research and development, and technology through early 2029 [10]. - In 2025, Johnson & Johnson invested $14.6 billion in R&D, leading to 28 programs generating over $1 billion in sales and 51 approved therapies in its innovative medicine division [11].