Core Thesis - Johnson & Johnson (J&J) is viewed positively due to its diversified business model, strong financials, and consistent dividend growth, making it an attractive investment opportunity [1][4]. Business Overview - J&J operates in three major divisions: pharmaceuticals, medical devices, and consumer health products, with pharmaceuticals being the largest growth driver [2]. - The company’s consumer health brands, such as Tylenol and Band-Aid, provide stability and relevance in everyday life, ensuring recurring demand and resilient cash flows [2]. Financial Performance - J&J's revenues increased from $70 billion in 2015 to nearly $89 billion projected for 2024, with operating income exceeding $61 billion [3]. - The company maintains a conservative payout ratio of around 55–60%, supporting its status as a Dividend King with 62 consecutive years of dividend increases [3]. Investment Metrics - J&J scores above 90 on the MaxDividends framework, indicating strong stability across sales growth, profit growth, net income resilience, payout safety, and low leverage [4]. - The stock has a moderate dividend yield of 2.8% and steady growth of approximately 6%, with valuation metrics suggesting it is slightly undervalued compared to peers [4]. Recent Performance - Since a previous bullish thesis in January 2025, J&J's stock price has appreciated by approximately 40.42%, reflecting strong fundamentals and continued investor confidence [5].