It's less than four months into the year, and many investors are already exhausted. The wild stock market swings fueled by the Trump administration's tariffs are to blame.
However, some stocks can weather the storm better than others. Johnson & Johnson (JNJ 0.22%) is one of them. Here are four reasons Johnson & Johnson could be the perfect stock to own in today's turbulent market.
Johnson & Johnson was founded in 1886. The company has survived and thrived in periods of high tariffs, recessions, and global instability multiple times through its 139 years in business.
Today, J&J is a healthcare giant that's a major player in innovative pharmaceuticals and medical technology. It generated nearly $89 billion in sales last year, with profits of over $14 billion.
The company continues to exhibit remarkable resilience. So far this year, J&J's share price is up around 6%, while the S&P 500 (^GSPC -2.24%) has fallen roughly 9%.
Johnson & Johnson CEO Joaquin Duato noted in the company's first-quarter earnings call this week:
No other healthcare company has delivered growth through the first year of losing exclusivity for a multibillion-dollar product, in our case, Stelara. And yet, that is exactly what we are doing. Our resiliency is a testament to what makes us unique.
Granted, Johnson & Johnson isn't delivering jaw-dropping growth these days. In the first quarter of 2025, the company's sales increased by only 2.4% year over year. However, its operational growth (which excludes the impact of currency fluctuations) was somewhat higher at 4.2%.
More importantly, though, J&J's growth should accelerate. Duato said in the Q1 call that 2025 is "a catalyst year... that will set us up for accelerated growth through the second half of the decade and beyond."
Is that just hype from a corporate executive? I don't think so. Johnson & Johnson has already won six regulatory approvals for drugs so far this year and expects nine additional approvals in 2025. The company has submitted three regulatory filings for approvals, with five more on the way. This group notably includes icotrokinra in treating psoriasis.
J&J's pipeline features 106 programs, including 40 in late-stage clinical trials. Many of them should have significant market potential. I'm especially optimistic about Rybrevant in combination with Lazcluze as a first-line treatment of non-small cell lung cancer. In one head-to-head study against the current standard of care, this combo improved overall survival by more than one year.
While Johnson & Johnson isn't completely immune to the effects of tariffs, it should be able to fare better than many companies will. CFO Joe Wolk explained in the Q1 earnings call, "[T]here's a reason why pharmaceutical tariffs are zero. It's because tariffs can create disruptions in the supply chain, leading to shortages."
Wolk argued that tax policy is the best way to promote building medtech and pharmaceutical manufacturing capacity. Johnson & Johnson is already investing more than $55 billion over the next four years in boosting its U.S. manufacturing and research and development operations. This investment includes four new manufacturing facilities, with the first already under construction in North Carolina.
Johnson & Johnson is increasing its dividend for the 63rd consecutive year. This further cements the healthcare giant's position among the elite group of companies known as Dividend Kings. J&J's forward dividend yield is now 3.37%. When the stock market is turbulent, investors should appreciate being paid handsomely to wait for better days.
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