Johnson & Johnson, together with its subsidiaries, researches, develops, manufactures, and sells various products in the healthcare field worldwide. The company's Innovative Medicine segment offers products for various therapeutic areas, such as immunology, including rheumatoid arthritis, psoriatic arthritis, inflammatory bowel disease, and psoriasis; infectious diseases comprising HIV/AIDS; neuroscience, consisting of mood disorders, neurodegenerative disorders, and schizophrenia; oncology, such as prostate cancer, hematologic malignancies, lung cancer, and bladder cancer; cardiovascular and metabolism, including thrombosis, diabetes, and macular degeneration; and pulmonary hypertension comprising pulmonary arterial hypertension through retailers, wholesalers, distributors, hospitals, and healthcare professionals for prescription use. Its MedTech segment provides Interventional Solutions, including electrophysiology products to treat heart rhythm disorders; the heart recovery portfolio, which includes technologies to treat severe coronary artery disease requiring high-risk PCI or AMI cardiogenic shock; and neurovascular care that treats hemorrhagic and ischemic stroke. this segment also offers an orthopaedics portfolio that includes products and enabling technologies that support hips, knees, trauma, spine, sports, and other; surgery portfolios comprising advanced and general surgery technologies, as well as solutions for breast aesthetics, ear, nose, and throat procedures; contact lenses under the ACUVUE Brand; and TECNIS intraocular lenses for cataract surgery. It distributes its products to wholesalers, hospitals, and retailers, as well as physicians, nurses, hospitals, eye care professionals, and clinics. Johnson & Johnson was founded in 1886 and is based in New Brunswick, New Jersey.

Johnson & Johnson

Watsco's Board of Directors has declared a regular quarterly cash dividend of $3.00 on each outstanding share of its Common and Class B common stock payable on January 30, 2026 to shareholders of record at the close of business on January 16, 2026. Watsco has paid dividends to shareholders for 52 consecutive years.
Johnson & Johnson today announced that its Board of Directors has declared a cash dividend for the first quarter of 2026 of $1.30 per share on the company's common stock. The dividend is payable on March 10, 2026 to shareholders of record at the close of business on February 24, 2026. The ex-dividend date is February 24, 2026.
GFL Environmental today announced that the Board of Directors of the Company has declared a cash dividend of US$0.0154 for each outstanding subordinate voting share and multiple voting share of the Company for the fourth quarter of 2025.
The cash dividend will be paid on January 30, 2026 to shareholders of record at the close of business on January 13, 2026.
RPM International today announced that its board of directors declared a regular quarterly cash dividend of $0.54 per share, payable on January 30, 2026, to stockholders of record as of January 16, 2026. RPM's last cash dividend increase of 6% in October 2025 marked RPM's 52nd consecutive year of increased cash dividends paid to its stockholders, which places RPM in an elite category of less than half of 1 percent of all publicly traded U.S. companies.
EMCOR Group today announced that its Board of Directors has declared a regular quarterly cash dividend of $0.40 per common share. The dividend will be paid on January 30, 2026 to stockholders of record as of January 14, 2026.
VIDEO: Daily Dividend Report: WSO,JNJ,GFL,RPM,EME
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Daily Dividend Report: WSO,JNJ,GFL,RPM,EME

Recent reports suggesting that pharma giants Novo Nordisk NVO and Eli Lilly LLY have lowered prices for their blockbuster obesity drugs, Wegovy and Mounjaro, in China, have sent ripples through the healthcare sector. List prices for certain Wegovy dosages in specific Chinese provinces were reportedly cut by nearly 48%, dropping to as low as 987 yuan ($141) per month (as reported by Reuters).
This aggressive move to secure market share in the world's most populous nation sparked immediate investor skepticism about future profitability, leading to a tumble in both companies' share prices, following the release of the news on Dec. 29, 2025.
For investors seeking exposure to the transformative obesity drug market while mitigating the risks of individual stock volatility, this situation highlights the potential advantage of keeping diversified Healthcare exchange-traded funds (ETFs) in their portfolio.
The Obesity Drug War: Pills, Injections and Intense Competition
The global obesity market has become intensely competitive with the emergence of oral GLP-1 agents, with NVO and LLY being two dominant forces in this market. Notably, Novo secured FDA approval last month for the oral formulation of Wegovy, the first GLP-1 obesity therapy that can be taken without injection, while Eli Lilly has submitted a U.S. NDA for its own oral GLP-1, orforglipron, with launch forecast around 2026.
Beyond these two, Pfizer PFE is re-entering the field via acquisitions and licensing deals after discontinuing its earlier danuglipron program, underscoring how big pharma players are chasing the same “weight-loss pill” opportunity.
In China specifically, where obesity prevalence has risen rapidly, of late, the race to capture more share of this nation’s weight-loss drug market has intensified. With over 65% of China's 1.4 billion population projected to be overweight or obese by 2030 (published by China’s National Health Commission), the potential for obesity drug makers is enormous.
But intense domestic competition, impending generics and pressure to keep therapies affordable must have forced global pharmaceuticals like Novo and Lilly to cut prices as a strategic play to build patient loyalty and market penetration before a wave of cheaper alternatives arrives.
This tactic mirrors their recent pricing moves in India and the United States, indicating a global shift toward competitive pricing to maintain volume growth.
Why Healthcare ETFs Might Be the Strategic Choice?
For a prudent investor, the "China price war" is a golden opportunity to pivot. While the long-term demand story for obesity drugs remains strong, navigating the winners and losers in this space, especially with new oral drugs in development worldwide, requires immense expertise and constant portfolio monitoring.
Therefore, instead of betting on whether Novo or Lilly wins the next round of price negotiations, Healthcare ETFs can offer a better way to capture the entire sector's growth. This diversification will protect your portfolio from the negative impact of price wars, clinical trial setbacks, or regulatory delays affecting any single firm.
Healthcare ETFs to Watch
Considering the aforementioned discussion, you may keep the following healthcare ETFs in your watchlist to capture the overall growth of the pharmaceutical and biotechnology industries, benefiting from the obesity drug boom while spreading risk across dozens of companies.
State Street Health Care Select Sector SPDR ETF XLV
This fund, with asset under management (AUM) worth $39.93 billion, provides exposure to 60 companies from the pharmaceuticals; health care equipment and supplies; health care providers and services; biotechnology; life sciences tools and services; and health care technology industries. Its top three holdings include LLY (15.18%), Johnson & Johnson JNJ (8.82%) and AbbVie ABBV (7.19%).
XLV has gained 13.3% over the past year. The fund charges 8 basis points (bps) as fees.
Vanguard Health Care ETF VHT
This fund, with net assets worth $17.7 billion, provides exposure to 417 companies that manufacture health care equipment and supplies or that provide health care-related services, and companies that are primarily involved in the research, development, production, and marketing of pharmaceuticals and biotechnology products. Its top three holdings include LLY (12.39%), ABBV (4.85%) and JNJ (4.42%).
VHT has rallied 14.2% over the past year. The fund charges 9 bps as fees.
iShares U.S. Healthcare ETF IYH
This fund, with net assets worth $3.57 billion, provides exposure to 103 U.S. healthcare equipment and services, pharmaceuticals, and biotechnology companies. Its top three holdings include LLY (14.79%), JNJ (8.56%), and ABBV (6.95%).
IYH has rallied 12% over the past year. The fund charges 38 bps as fees.
iShares Global Healthcare ETF IXJ
This fund, with net assets worth $4.50 billion, provides exposure to 114 pharmaceutical, biotechnology, and medical device companies. Its top three holdings include LLY (10.77%), JNJ (6.29%) and ABBV (5.10%).
IXJ has gained 14.1% over the past year. The fund charges 38 bps as fees.
VanEck Pharmaceutical ETF PPH
This fund, with assets worth $1.28 billion, provides exposure to 26 largest most liquid pharmaceutical companies. Its top four holdings include LLY (20.766%), Novartis NVS (10.04%), Merck MRK (8.91%) and NVO (6.45%).
PPH has surged 21.6% over the past year. The fund charges 36 bps as fees.
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Spotlight on Health ETFs as NVO & LLY Cut Obesity Drug Price in China

AbbVie ABBV has built a substantial neuroscience franchise. While the segment was initially anchored by Botox Therapeutic and the depression drug Vraylar, its offerings now include the oral migraine drugs Ubrelvy and Qulipta, and the Parkinson’s disease (PD) therapy Vyalev (launched last year in the United States).
Sales of the neuroscience segment accounted for more than 17% of AbbVie’s total revenues in the first nine months of 2025. This upside was primarily driven by higher sales of Botox Therapeutic, Vraylar, Qulipta and Ubrelvy, all of which registered double-digit gains from prior-year levels. Some additional momentum came from Vyalev, which generated $299 million in sales during the first nine months of 2025, driven by strong uptake across all markets. Growth from this newer asset has helped offset declining sales of older therapies, such as Duodopa.
AbbVie expects to close 2025 with neuroscience sales worth $10.7 billion, suggesting 19% growth over the 2024 levels. Our model estimates for this metric stand at about $10.8 billion.
Looking ahead, the neuroscience franchise is positioned to play an even larger role in AbbVie’s growth strategy. Beyond the expected uptake of its marketed therapies, the company is preparing to broaden this portfolio with new offerings. ABBV recently submitted a regulatory filing to the FDA for tavapadon, a once-daily oral therapy for PD, backed by late-stage data showing symptomatic improvement across a broad patient group. If approved, tavapadon could launch later this year, thereby expanding AbbVie’s PD footprint and further strengthening the long-term contribution of its neuroscience segment.
AbbVie is also investing heavily in pipeline expansion to sustain long-term growth in neuroscience. More recently, it acquired Gilgamesh Pharmaceuticals’ lead psychedelic drug candidate, bretisilocin, which is being evaluated in a mid-stage study for major depressive disorder (MDD) — an area with significant commercial potential. Such additions underscore AbbVie’s intent to build a next-generation neuroscience portfolio focused on novel-mechanism therapies.
AbbVie’s Peers in the Neuroscience Space
Other large players in this segment are Biogen BIIB and Johnson & Johnson JNJ.
Due to the steeply declining revenues of its multiple sclerosis franchise, Biogen is diversifying into novel neuroscience therapies. BIIB, along with partner Eisai, is one of the two companies that market an FDA-approved treatment for AD, Leqembi. Biogen also markets Zurzuvae, the first and only FDA-approved oral treatment for postpartum depression (PPD).
J&J markets several leading neuroscience products, led by the blockbuster antidepressant nasal spray Spravato and antipsychotic drug Invega Sustenna. Both remain key growth drivers for the company’s pharma unit. In April, J&J completed the acquisition of Intra-Cellular Therapies, which added the antidepressant drug Caplyta to its neuroscience portfolio. While already approved for schizophrenia and bipolar depression, this drug secured FDA approval last year for MDD.
ABBV’s Price Performance, Valuation and Estimates
Shares of AbbVie have outperformed the industry in the past year, as seen in the chart below.
Image Source: Zacks Investment Research
From a valuation standpoint, AbbVie is at a premium to the industry. Based on the price/earnings (P/E) ratio, the company’s shares currently trade at 21.41 times forward earnings, higher than its industry’s average of 19.26. The stock is also trading above its five-year mean of 13.53.
Image Source: Zacks Investment Research
Over the past 30 days, the Zacks Consensus Estimate for 2025 EPS has remained consistent at $10.64, while that for 2026 has increased from $14.40 to $14.42.
Image Source: Zacks Investment Research
AbbVie currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Here's How AbbVie's Neuroscience Portfolio Is Aiding Top-line Growth

Investors in Johnson & Johnson (Symbol: JNJ) saw new options begin trading today, for the February 2026 expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the JNJ options chain for the new February 2026 contracts and identified one put and one call contract of particular interest.
The put contract at the $190.00 strike price has a current bid of 50 cents. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $190.00, but will also collect the premium, putting the cost basis of the shares at $189.50 (before broker commissions). To an investor already interested in purchasing shares of JNJ, that could represent an attractive alternative to paying $206.61/share today.
Because the $190.00 strike represents an approximate 8% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 83%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 0.26% return on the cash commitment, or 2.18% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for Johnson & Johnson, and highlighting in green where the $190.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $210.00 strike price has a current bid of $3.05. If an investor was to purchase shares of JNJ stock at the current price level of $206.61/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $210.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 3.12% if the stock gets called away at the February 2026 expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if JNJ shares really soar, which is why looking at the trailing twelve month trading history for Johnson & Johnson, as well as studying the business fundamentals becomes important. Below is a chart showing JNJ's trailing twelve month trading history, with the $210.00 strike highlighted in red:
Considering the fact that the $210.00 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 56%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 1.48% boost of extra return to the investor, or 12.25% annualized, which we refer to as the YieldBoost.
The implied volatility in the put contract example is 27%, while the implied volatility in the call contract example is 21%.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 250 trading day closing values as well as today's price of $206.61) to be 20%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
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Interesting JNJ Put And Call Options For February 2026

2025 has proved to be a turnaround for the German pharmaceutical giant Bayer BAYRY. Shares have skyrocketed 121.6% over the past year compared with the industry’s gain of 19.2%. The stock has also outperformed the sector and the S&P 500 Index in this time frame.
BAYRY Outperforms Industry, Sector & S&P 500 Index
Image Source: Zacks Investment Research
The stupendous performance can be attributed new drug approvals, encouraging pipeline progress, improved performance of the Crop Science business and positive updates on the ongoing litigations.
However, investors may now be questioning whether this momentum can be sustained in 2026. Let’s take a closer look at BAYRY’s strengths and weaknesses to assess how the stock should be positioned at current levels.
BAYRY’s Efforts to Strengthen Pharma Business
Bayer’s new products, such as prostate cancer drug Nubeqa and kidney disease drug Kerendia (finerenone), continue to maintain their impressive momentum in the Pharmaceutical division and offset the negative impact of a decline in Xarelto sales.
Earlier in 2025, the FDA approved a label expansion of Kerendia for the treatment of adult patients with heart failure (HF) and a left ventricular ejection fraction (LVEF) of ≥40%.
With the latest FDA approval, Kerendia has become the only non-steroidal mineralocorticoid receptor antagonist approved in the United States for chronic kidney disease associated with type 2 diabetes and for HF with LVEF of ≥40%.
The regulatory body also expanded Nubeqa’s label for a third indication for patients with advanced prostate cancer. Following this approval, Nubeqa has become the first FDA-approved androgen receptor inhibitor for the treatment of patients with hormone-sensitive prostate cancer, in combination with androgen deprivation therapy, with or without chemotherapy.
In addition, Nubeqa is approved for the treatment of adult patients with non-metastatic castration-resistant prostate cancer, who are at high risk of developing metastatic disease.
Nubeqa generated sales of €1.68 billion in the first nine months of 2025.
The strong performance of these drugs makes up for the decline in sales of oral anticoagulant Xarelto, which is co-developed with Johnson & Johnson JNJ.
Xarelto is marketed by Johnson & Johnson in the United States. Bayer earns license revenues from JNJ for Xarelto sales in the United States.
Eylea sales continue to face pressure from generics; however, the introduction of Eylea 8 mg, with its extended dosing intervals, has partially offset the decline and supported overall performance.
Please note that Bayer’s HealthCare unit co-develops Eylea with Regeneron REGN, which records net product sales of Eylea in the United States. BAYRY records net product sales of Eylea outside the country. REGN records its share of profits/losses in connection with the sales of Eylea outside the United States.
Meanwhile, Bayer recently obtained FDA approval of elinzanetant for the treatment of moderate to severe menopause-related vasomotor symptoms (VMS, also known as hot flashes) under the brand name Lynkuet.
The drug was also approved by the European Commission. Lynkuet is already approved in the UK.
The approval of elinzanetant is a significant boost for the company.
The FDA recently granted accelerated approval to Hyrnuo (sevabertinib) for the treatment of adult patients with locally advanced or metastatic non-squamous non-small cell lung cancer whose tumors have human epidermal growth factor receptor 2 tyrosine kinase domain activating mutations, as detected by an FDA-approved test, and who have received a prior systemic therapy.
Label expansion of key drugs and approval of additional drugs will further boost sales from this business.
Bayer Advances Pipeline
Bayer is making good pipeline progress as well. The new drug application for investigational contrast agent, gadoquatrane, had been accepted for review in both the United States and China. Gadoquatrane is being developed for use in contrast-enhanced magnetic resonance imaging of the central nervous system and other body regions in adults and pediatric patients, including term neonates.
Bayer also received a boost recently as pipeline candidate asundexian met primary efficacy and safety endpoints in late-stage OCEANIC-STROKE Study in secondary stroke prevention. Bayer will work with health authorities worldwide to submit marketing authorization applications seeking approval for the candidate.
In 2021, Bayer acquired the clinical-stage biopharmaceutical company Vividion Therapeutics to expand its presence in precision small-molecule therapeutics, with a primary focus on oncology and immunology.
BAYRY has expanded its pipeline in new modalities of cell therapy through the acquisition of BlueRock, and in gene therapy, through the AskBio buyout.
Bayer, together with its subsidiaries, BlueRock and AskBio, is developing cell and gene therapies for treating various diseases, including retinal disorders, congestive heart failure and Parkinson's disease.
Positive Update on Roundup Litigation Boosts BAYRY
Bayer stock recently got a boost after the Solicitor General supported a Supreme Court review of its Roundup weedkiller case in the United States.
Bayer believes that the backing of the government in the United States will be important to the court’s consideration of its petition.
Bayer acquired Roundup weedkiller through Monsanto’s buyout in 2018. However, several lawsuits have been filed by people for the same, alleging that Monsanto’s herbicide caused them to develop cancers. Glyphosate is the active ingredient in Roundup weedkiller.
It has also been alleged that people were not made aware of the cancer risks by either Monsanto or Bayer. Consequently, Bayer has incurred significant litigation costs due to these lawsuits.
As of Sept. 30, 2025, Bayer reserved $7.6 billion (€6.5 billion) for glyphosate litigation, including adjustments for possible settlements of first-instance verdicts currently on appeal or in post-trial review.
As of Oct. 15, 2025, roughly 132,000 of the nearly 197,000 claims had been resolved, either through settlement or by being deemed ineligible.
BAYRY’s Valuation and Estimates
From a valuation perspective, BAYRY is currently quite inexpensive. Going by the price/earnings ratio, the company’s shares currently trade at 7.59X forward earnings, quite below 17X for the industry. The stock is trading higher than its five-year mean of 6.49X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for 2025 earnings per share has risen from $1.32 to $1.41 while that for 2026 EPS has increased from $1.38 to $1.43 over the past 60 days.
Image Source: Zacks Investment Research
Stay Invested in BAYRY
BAYRY has a large diversified portfolio. The company’s pharma business continues to maintain momentum. Newer drugs pave the way for growth, and the approval of additional new drugs should further bolster the portfolio.
While we are impressed by the remarkable turnaround by the company this year, the Crop Science business still has a few challenges to wade through and significant Roundup litigation charges continue to be a headwind.
The stock is trading near its 52-week high of $10.85 at present. Hence, we recommend existing investors to stay invested for now.
On the other hand, prospective investors can keep an eye on the stock and wait for better entry levels. Any positive updates on the regulatory front will be a significant boost.
BAYRY currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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BAYRY's 2025 Revival: Will the Momentum Continue in 2026?

Boston Scientific’s BSX Cardiovascular segment operates in a $50 billion market, projected to grow nearly 9% over the 2026-2028 long-range plan (LRP). Management expects the business to outpace end-market growth rates and also be accretive to the company’s target of more than 10% average organic revenue growth. Electrophysiology (“EP”), one of the fastest growing businesses, is expected to grow roughly 15% over the LRP, driven by continued share gains and expansion into additional EP areas, such as the $1 billion Intracardiac Echocardiography space.
Meanwhile, Boston Scientific’s WATCHMAN remains the leading device in percutaneous LAAC globally. Management’s long-term view of WATCHMAN as a 20%+ growth engine is contingent upon positive outcomes from the OPTION trial, already published in the New England Journal of Medicine, and the upcoming CHAMPION trial readout in the first half of 2026.
The company’s CRM DX business — covering active implantables, pacemakers and others — is expected to grow about 4% over the LRP. Recent investments in the conduction system pacing, entry into the leadless market in modular therapies and the launch of a new platform midway through the plan are expected to support a return to at least market-level growth.
The Interventional Cardiology Therapies (ICTx) is the company’s most global Cardiovascular business, with strong development in the Emerging Markets, such as Asia, the Middle East, Africa, and Latin America, helping it sustain a double-digit growth rate. The company forecasts 10% growth for ICTx and intends to outperform the rate. The Peripheral Interventions, Interventional Oncology and Embolics businesses collectively represent $11 billion, growing around 7%, with the company aiming to grow above market as well.
Update From Boston Scientific’s Peers
Medtronic MDT announced that its Diabetes business, soon to operate under the name MiniMed, has filed a registration statement on Form S-1 with the U.S. Securities and Exchange Commission for a proposed initial public offering (IPO) of newly issued common stock. The separation is expected to be completed through a series of capital markets transactions, preferably via an IPO and subsequent split-off. Additionally, Medtronic’s Hugo robotic-assisted surgery (RAS) system has secured FDA approval for use in urologic surgical procedures.
Johnson & Johnson JNJ has completed the acquisition of Halda Therapeutics OpCo, Inc. for $3.05 billion in cash. With this acquisition, Johnson & Johnson adds HLD-0915, a clinical-stage therapy for prostate cancer, building on its nearly two decades of innovation in this disease area. In addition, the European Commission has approved the company’s TREMFYA (guselkumab) for the treatment of children with plaque psoriasis, marking the first paediatric indication for an IL-23 inhibitor.
BSX Price Performance, Valuation and Estimates
In the past year, BSX shares have climbed 7.5% compared with the industry’s 1.7% rise.
Image Source: Zacks Investment Research
BSX shares are trading at a forward, five-year Price-to-Earnings (P/E) ratio of 27.81, above its median and the industry average.
Image Source: Zacks Investment Research
See how analysts are projecting Boston Scientific’s 2025 and 2026 earnings.
Image Source: Zacks Investment Research
BSX stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks Naming Top 10 Stocks for 2026
Want to be tipped off early to our 10 top picks for the entirety of 2026? History suggests their performance could be sensational.
From 2012 (when our Director of Research Sheraz Mian assumed responsibility for the portfolio) through November, 2025, the Zacks Top 10 Stocks gained +2,530.8%, more than QUADRUPLING the S&P 500’s +570.3%.
Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2026. Don’t miss your chance to get in on these stocks when they’re released on January 5.
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How Is Boston Scientific's Cardiovascular Growth Path Shaping Up?

Key Points
Bristol Myers Squibb is a pharmaceutical giant with a solid dividend history.
Medtronic is a high-yield medical device maker that's nearing Dividend King status.
J&J makes drugs and medical devices and boasts of over 50 annual dividend increases.
Most dividend investors are looking not just for a high yield, but also for a company that can reliably support that yield over the long term. It is harder to find than you may think, but not impossible.
Three solid options in the healthcare sector are pharmaceutical giant Bristol Myers Squibb (NYSE: BMY), medical device giant Medtronic (NYSE: MDT), and drug and device giant Johnson & Johnson (NYSE: JNJ), which offer yields of up to 4.6%.
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Income is not enough
One of the significant issues that dividend investors face isn't directly an investment phenomenon; it is an economic one. Over time, inflation erodes the buying power of the income you generate from dividends. This is why you should focus on companies that have the capacity to grow and, at the same time, have proven track records of rewarding shareholders with dividend growth.
Healthcare is an innovation-driven industry, where new products help support growth. Also beneficial is simple population growth. Countries moving up the socio-economic ladder are also a plus, since it means more consumers can afford more medical products.
Essentially, Bristol Myers Squibb, Medtronic, and Johnson & Johnson are all in a strong industry if you prefer dividend-paying stocks. However, the proof is in the pudding, as the board of directors of each company determines its dividend policy.
Bristol Myers Squibb: A proven survivor
Bristol Myers Squibb's dividend history is the least impressive, as it has trended higher for decades but hasn't actually been increased every single year.
That makes sense, however, given the nature of the pharmaceutical business. Blockbuster drugs only have a limited time period in which they are protected by patents, so Bristol Myers Squibb is always searching for new big drug developments and dealing with the patent cliffs that come when a blockbuster drug loses patent protection.
Bristol Myers Squibb's dividend yield is the highest on this list at 4.6%. It is currently facing down a patent cliff of several blockbuster drugs, including Eliquis, Opdivo, and Revlimid. That has investors worried, perhaps rightly so. However, history suggests the company will survive this period, noting that it appears to have a solid pipeline of new drug candidates. And, while an 85% dividend payout ratio is somewhat high, it still leaves some wiggle room for the dividend.
You can buy around nine shares of Bristol Myers Squibb with $500.
Medtronic: Nearly a Dividend King
Medtronic's yield is 2.9%. A $500 investment will allow you to buy around five shares of this medical device maker. The fact dividend investors will likely find most interesting here is that with 48 annual dividend increases behind it, Medtronic is just two years shy of achieving Dividend King status. That's an incredible amount of consistency, highlighting just how reliable a dividend stock Medtronic is.
Medtronic's yield is actually toward the high end of its historical range. That's because the company's growth has been in neutral for a few years. However, a business overhaul that will refocus the company on its most profitable and fastest-growing divisions is just about complete.
New medical devices are also starting to come to market, following a lull in innovation from the company. Long-term investors who don't act soon could miss the opportunity to buy this reliable dividend stock while it is still offering a high yield.
Johnson & Johnson: A reliable Dividend King
With over six decades of dividend increases under its belt, Johnson & Johnson boasts the best dividend track record, by a wide margin. The company's diversification helps in this regard, as it operates in both the drug and medical device niches. That said, it also has the lowest dividend yield, at 2.5%. A $500 investment will allow you to buy roughly two shares of the stock.
Given its business diversification and dividend track record, J&J is probably the most appropriate option for conservative dividend investors. However, it is not a risk-free investment, noting the lingering overhang surrounding class action lawsuits about talcum powder that the company once produced.
That said, Johnson & Johnson has proven adept at navigating challenging times before while continuing to reward investors for their loyalty. And with a 50% payout ratio, there's plenty of room for adversity before the dividend would be at risk.
Buy and hold these high-yield healthcare stocks
While Bristol Myers Squibb, Medtronic, and Johnson & Johnson are all attractive for their own reasons at present, the real benefit of owning them lies in the long term. You want to buy and hold, perhaps forever, so you can keep collecting the well-above-market yields they offer, backed by dividends that have strong histories of growth.
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Reuben Gregg Brewer has positions in Medtronic. The Motley Fool has positions in and recommends Bristol Myers Squibb. The Motley Fool recommends Johnson & Johnson and Medtronic and recommends the following options: long January 2026 $75 calls on Medtronic and short January 2026 $85 calls on Medtronic. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Got $500? 3 Dividend-Paying Healthcare Stocks to Buy and Hold Forever

Not all growth opportunities require aggressive risk-taking. Investors seeking to build a strong portfolio with steady income and long-term wealth creation can benefit from adding dividend-paying stocks. In return, these stocks provide a predictable income stream, helping cushion portfolios during periods of market volatility.
Stocks that pay regular dividends offer an attractive investment opportunity. Investors always look for greater yields and returns on investments. Regular dividend hikes reflect confidence in operational strength, which, in turn, fuels earnings power. For investors who do not rely on regular income, reinvesting dividends can significantly enhance capital appreciation and long-term wealth creation through the power of compounding.
In this connection, large pharmaceutical companies stand out as dividend-friendly investments, as their stable cash flows support regular dividend payouts and long-term dividend growth. They offer a combination of resilient demand for essential medicines, diversified product portfolios and the financial strength to support consistent shareholder returns. Investors find appeal in this sector since it is largely insulated from economic cycles, given the ongoing need for innovative medical treatments.
What Favors Pharma Stocks in 2026?
Several large drugmakers have signed drug pricing agreements with the Trump administration in the past three to four months, marking a more cooperative stance between the sector and the government after years of regulatory tension. Although the reduced drug prices will likely hurt profits in the near term, we expect broader patient access could drive higher prescription volumes, partially offsetting the revenue impact over time.
Innovation is likely to drive growth in the industry, with a focus on high-growth areas such as obesity, gene therapy, inflammation and neuroscience, which carry significant commercial potential.
We also expect M&A activity to remain strong in 2026, with the focus likely to be on selective, innovation-driven biotech acquisitions rather than large-scale consolidation. To manage costs and reduce risk, industry players may increasingly favor collaboration and licensing agreements over outright takeovers.
Dividend Stocks for Your Portfolio
In this article, we highlight three dividend-paying, large-cap pharma companies — Johnson & Johnson JNJ, AbbVie ABBV and Merck MRK. These stocks have been identified with the help of the Zacks Stock Screener, based on a dividend yield greater than 2% and a five-year historical dividend growth crossing 5%.
Johnson & Johnson
J&J is generally considered to be one of the safest and highest-rated stocks by financial analysts. It maintains the S&P Global’s top-tier ‘AAA’ credit rating, highlighting its exceptional financial strength. The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
J&J is a member of the S&P Dividend Aristocrats, an index that tracks companies that have increased their dividends for at least 25 consecutive years. It is known to be one of the few companies that have hiked dividends for 63 consecutive years. The company’s current dividend of $5.20 per share yields 2.50%, better than the industry average of 1.87%. J&J’s payout ratio presently sits at 50% of earnings, with a five-year dividend growth rate of 5.39%.
Johnson & Johnson Dividend Yield (TTM)
J&J’s Innovative Medicines/Pharma segment is performing above market, despite currency headwinds and the impact of biosimilar and generic competition on sales of some key drugs. The growth is being driven by key drugs like Darzalex, Erleada and Tremfya, as well as continued uptake of new launches, including Spravato, Carvykti and Tecvayli. J&J expects the Innovative Medicine business to grow 5% to 7% from 2025 to 2030, with oncology sales projected to surpass $50 billion by the end of the decade.
In 2026, JNJ also expects better growth in the MedTech business than in 2025 so far, driven by increased adoption of newly launched products across all MedTech platforms and increased focus on higher-growth markets.
AbbVie
This company is known for its robust dividend profile, supported by a strong diversified portfolio of marketed drugs. ABBV currently carries a Zacks Rank #3 (Hold).
Like J&J, AbbVie is also a member of the S&P Dividend Aristocrats. In October, the company declared a 5.5% increase in quarterly dividend to $1.73 per share, payable in the first quarter of 2026. ABBV has been increasing its dividend annually since coming into existence in 2013, after Abbott Laboratories (also a member of the Dividend Aristocrats) divested its pharmaceutical division. The stock currently offers a dividend yield of 2.85%. AbbVie’s payout ratio is approximately 69% of its earnings, with a five-year dividend growth rate of 6.14%.
AbbVie Inc. Dividend Yield (TTM)
AbbVie is a leading player in immunology, driven by Skyrizi and Rinvoq, which have successfully replaced the legacy drug Humira following the loss of its U.S. exclusivity in 2023 and now anchor the company’s growth profile. Supported by strong and accelerating demand for these newer immunology therapies, AbbVie has returned to a more stable growth trajectory. Looking ahead, the company expects a high single-digit revenue CAGR through 2029, aided by a favorable patent runway and additional contributions from its oncology and neuroscience portfolios.
Merck
This company stands out within the large-cap pharma space, supported by a strong portfolio in the oncology space. The stock currently carries a Zacks Rank #3.
Merck declared a 4.9% increase to 85 cents per share in quarterly dividend payable in the first quarter of 2026. It has consistently hiked its dividend 15 times over the past 14 years. The company’s current dividend yield of 3.18% betters the industry average of 1.87%. This pharma giant’s payout ratio currently sits at 37% of earnings, with a five-year dividend growth rate of 5.43%.
Merck & Co., Inc. Dividend Yield (TTM)
Merck boasts more than six blockbuster drugs in its portfolio, with Keytruda being the key top-line driver. Keytruda has been playing an instrumental role in driving Merck’s steady revenue growth in the past few years. Merck’s other oncology drugs, Welireg, AstraZeneca-partnered Lynparza and Eisai-partnered Lenvima, are also contributing to top-line growth. Over the past few years, Merck has almost tripled its late-stage pipeline, supported by growth through both organic and inorganic means. This has positioned the company to launch around 20 new vaccines and drugs over the next few years, with many having blockbuster potential. Through these launches, Merck intends to address concerns around the upcoming loss of exclusivity of Keytruda in 2028.
Zacks Naming Top 10 Stocks for 2026
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

3 Dividend-Paying Pharma Stocks Worth Watching for Steady 2026 Gains

For Immediate Release
Chicago, IL – December 30, 2025 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: International Business Machines Corp. IBM, Analog Devices, Inc. ADI, Johnson & Johnson’s JNJ, The Gap, Inc. GAP and Hewlett Packard Enterprise HPE.
Here are highlights from Monday’s Analyst Blog:
Top 5 High-Yield S&P 500 Stock to Buy for 2026
The U.S. stock market has experienced significant volatility at the beginning of 2025 owing to a multitude of factors. The trade policy framework undertaken in the new Trump administration has reshaped market sentiment. The aggressive tariff measures imposed by Washington on its major trading partners have left several businesses in a state of uncertainty. The growing Sino-U.S. trade tension was a concerning factor for investors. The U.S. government aims to limit Beijing’s access to high-end technologies. It has imposed restrictions on the export of advanced semiconductor tech to China.
The tariff-related uncertainties have significantly affected companies with a strong presence in the emerging markets of Asia and Latin America. Moreover, the war in Europe and the Middle East has further aggravated the market uncertainty. These developments have led to rising manufacturing costs and supply chain issues, putting pressure on margins. However, there were some positive macroeconomic developments as well in 2025. The federal reserve rate cuts have lowered borrowing costs and improved corporate profitability.
Trade-related risks and changes in monetary policy led to frequent stock price fluctuations. However, broader market momentum remained positive with tech stocks largely leading the bull run. Growing spending on AI infrastructure and digital transformation is driving growth in the tech sector. Despite a hike in energy prices, the overall annual inflation rate was lower than expected in 2025.
Key Growth Drivers for 2026
Rapid AI buildouts are expected to be a key driver for businesses in 2026. Businesses in several industries such as manufacturing, healthcare, energy, social ecommerce, telecom and others are rapidly incorporating AI across the portfolio to gain a competitive edge. However, this rapid AI build-out requires substantial computing infrastructure, data centers to support these AI workloads, as well as energy optimization and cooling technologies.
AI integration has become capex-heavy. There is a gap between investing in AI infrastructure and realizing gains from this investment. The growth in AI capex is expected to put pressure on the balance sheet and can create margin pressure in the short term. The companies with stable earnings and robust cash flow are expected to be the gainers amid such emerging market trends.
China is a major supplier of rare earth materials that many major tech companies rely on. This can force the United States to avoid imposing high tariffs and maintain a cordial relationship with the Communist nation, at least in the near term. However, the U.S. government’s effort to reduce the widening trade deficit with other nations indicates that tariff-related uncertainties will remain a concern for investors in the upcoming quarters. After three rate cuts in 2025, the chances of another rate cut remain low, at least at the beginning of 2026.
Amid such macroeconomic uncertainties and persistent geopolitical volatility, there is a growing interest in S&P 500 stocks with high dividend yield. So far in 2025, the average dividend yield of S&P 500 stocks stands at 1.07%. Based on above average dividend yields, strong fundamentals and growing AI-related investment, we have shortlisted five stocks that have strong growth potential in 2026.
Key Picks
International Business Machines Corp.: Headquartered in Armonk, NY, IBM is a leading provider of cloud and data platforms. In addition, the company provides advanced information technology solutions, computer systems, quantum computing and supercomputing solutions, enterprise software, storage systems and microelectronics.
The company has positioned itself as a major player in the expanding AI landscape worldwide. Its breakthrough innovations, hybrid cloud and AI are utilized by clients across 175 countries to streamline business processes, optimize cost and gain a competitive edge. The company boasts a vast client base across multiple industries, including financial services, telecommunications, healthcare, retail and more. In the third quarter, IBM’s free cash flow improved to $2.37 billion, up from $2.06 billion a year ago.
IBM pays out a quarterly dividend of $1.68 per share ($6.72 annualized), with a 2.2% yield at the current stock price. IBM’s payout ratio is 61%, with a five-year dividend growth rate of 0.62%. The company currently carries a Zacks Rank #2 (Buy). (Check IBM’s dividend history here). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Analog Devices, Inc.: Headquartered in Norwood, MA, Analog Devices is an original equipment manufacturer of semiconductor devices, specifically, analog, mixed signal and digital signal processing (DSP) integrated circuits. The company’s top line is benefiting from strong growth in its industrial, aerospace and defense businesses, fueled by demand for AI chip infrastructure buildout, automated test equipment, and a rebound in automation and healthcare markets.
Analog Devices’ strong operating cash flow has helped it return cash through regular quarterly dividend payments and share repurchases. In fiscal 2025, the company generated operating cash flow of $4.81 billion and free cash flow of $4.28 billion.
ADI pays out a quarterly dividend of 99 cents per share ($3.96 annualized), with a 1.43% yield at the current stock price. ADI’s payout ratio is 51%, with a five-year dividend growth rate of 10.31%. The company currently carries a Zacks Rank #2. (Check ADI’s dividend history here)
Johnson & Johnson’s: Headquartered in New Brunswick, NJ, Johnson & Johnson is a leading provider of pharmaceuticals and medical devices worldwide. With more than 275 subsidiaries, its business model is extremely well diversified. Its diversification helps it to withstand economic cycles more effectively.
In 2026, J&J expects accelerated growth in the Innovative Medicine segment to be driven by its key products, such as Darzalex, Tremfya, Spravato and Erleada, as well as new drugs like Carvykti, Tecvayli and Talvey, and recently launched products, including Tremfya in inflammatory bowel disease, Rybrevant plus Lazcluze in non-small cell lung cancer and the newly approved drug, Inlexzo in bladder cancer. The company reported a $17.22 billion in cash from operating activities.
JNJ pays out a quarterly dividend of $1.3 per share ($5.2 annualized), with a 2.5% yield at the current stock price. JNJ’s payout ratio is 50%, with a five-year dividend growth rate of 5.39%. The company currently carries a Zacks Rank #2. (Check JNJ’s dividend history here)
The Gap, Inc.: With roughly 3,500 stores worldwide, The Gap, Inc. is a premier international specialty retailer offering a diverse range of clothing, accessories, and personal care products. Gap continues to benefit from strong brand performance and rising market share across its largest banners, supported by consistent progress on its brand reinvigoration strategy. Management remains focused on its four strategic priorities: driving financial and operational rigor, reinvigorating its brands, reinforcing its operating platform and supply chain, and energizing its internal culture.
The company reported net cash from operating activities of $607 million, with free cash flow of $280 million, underscoring its disciplined approach to business management. Gap pays out a quarterly dividend of 16 cents (66 cents annualized), with a 2.52% yield at the current stock price. GAP’s payout ratio is 29%, with a five-year dividend growth rate of 1.49%. The company currently carries a Zacks Rank of 2. (Check GAP’s dividend history here)
Hewlett Packard Enterprise: Headquartered in Spring, TX, Hewlett Packard Enterprise is a leading provider of essential enterprise technology. The company’s top line is benefiting from solid traction in the AI networking market. The acquisition of Juniper Networks underlines Hewlett Packard Enterprise’s relentless focus on fortifying its networking business, aligning with the burgeoning demand for high-growth solutions in the evolving tech landscape.
In the fourth quarter, HPE generated $2.5 billion in cash from operating activities and produced $1.9 billion in free cash flow, both increasing meaningfully from the prior-year period. HPE pays out a quarterly dividend of 14 cents (57 cents annualized), with a 2.33% yield at the current stock price. HPE’s payout ratio is 33%, with a five-year dividend growth rate of 2.21%. The company currently carries a Zacks Rank #3 (Hold). (Check HPE’s dividend history here).
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
#1 Semiconductor Stock to Buy (Not NVDA)
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Analog Devices, Inc. (ADI) : Free Stock Analysis Report
Johnson & Johnson (JNJ) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The Zacks Analyst Blog Highlights International Business Machines, Analog Devices, Johnson & Johnson's, The Gap and Hewlett Packard Enterprise

The U.S. stock market has experienced significant volatility at the beginning of 2025 owing to a multitude of factors. The trade policy framework undertaken in the new Trump administration has reshaped market sentiment. The aggressive tariff measures imposed by Washington on its major trading partners have left several businesses in a state of uncertainty. The growing Sino-U.S. trade tension was a concerning factor for investors. The U.S. government aims to limit Beijing’s access to high-end technologies. It has imposed restrictions on the export of advanced semiconductor tech to China.
The tariff-related uncertainties have significantly affected companies with a strong presence in the emerging markets of Asia and Latin America. Moreover, the war in Europe and the Middle East has further aggravated the market uncertainty. These developments have led to rising manufacturing costs and supply chain issues, putting pressure on margins. However, there were some positive macroeconomic developments as well in 2025. The federal reserve rate cuts have lowered borrowing costs and improved corporate profitability.
Trade-related risks and changes in monetary policy led to frequent stock price fluctuations. However, broader market momentum remained positive with tech stocks largely leading the bull run. Growing spending on AI infrastructure and digital transformation is driving growth in the tech sector. Despite a hike in energy prices, the overall annual inflation rate was lower than expected in 2025.
Key Growth Drivers for 2026
Rapid AI buildouts are expected to be a key driver for businesses in 2026. Businesses in several industries such as manufacturing, healthcare, energy, social ecommerce, telecom and others are rapidly incorporating AI across the portfolio to gain a competitive edge. However, this rapid AI build-out requires substantial computing infrastructure, data centers to support these AI workloads, as well as energy optimization and cooling technologies. AI integration has become capex-heavy. There is a gap between investing in AI infrastructure and realizing gains from this investment. The growth in AI capex is expected to put pressure on the balance sheet and can create margin pressure in the short term. The companies with stable earnings and robust cash flow are expected to be the gainers amid such emerging market trends.
China is a major supplier of rare earth materials that many major tech companies rely on. This can force the United States to avoid imposing high tariffs and maintain a cordial relationship with the Communist nation, at least in the near term. However, the U.S. government’s effort to reduce the widening trade deficit with other nations indicates that tariff-related uncertainties will remain a concern for investors in the upcoming quarters. After three rate cuts in 2025, the chances of another rate cut remain low, at least at the beginning of 2026.
Amid such macroeconomic uncertainties and persistent geopolitical volatility, there is a growing interest in S&P 500 stocks with high dividend yield. So far in 2025, the average dividend yield of S&P 500 stocks stands at 1.07%. Based on above average dividend yields, strong fundamentals and growing AI-related investment, we have shortlisted five stocks that have strong growth potential in 2026.
Key Picks
International Business Machines Corporation IBM: Headquartered in Armonk, NY, IBM is a leading provider of cloud and data platforms. In addition, the company provides advanced information technology solutions, computer systems, quantum computing and supercomputing solutions, enterprise software, storage systems and microelectronics.
The company has positioned itself as a major player in the expanding AI landscape worldwide. Its breakthrough innovations, hybrid cloud and AI are utilized by clients across 175 countries to streamline business processes, optimize cost and gain a competitive edge. The company boasts a vast client base across multiple industries, including financial services, telecommunications, healthcare, retail and more. In the third quarter, IBM’s free cash flow improved to $2.37 billion, up from $2.06 billion a year ago.
IBM pays out a quarterly dividend of $1.68 per share ($6.72 annualized), with a 2.2% yield at the current stock price. IBM’s payout ratio is 61%, with a five-year dividend growth rate of 0.62%. The company currently carries a Zacks Rank #2 (Buy). (Check IBM’s dividend history here). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Image Source: Zacks Investment Research
Analog Devices, Inc. ADI: Headquartered in Norwood, MA, Analog Devices is an original equipment manufacturer of semiconductor devices, specifically, analog, mixed signal and digital signal processing (DSP) integrated circuits. The company’s top line is benefiting from strong growth in its industrial, aerospace and defense businesses, fueled by demand for AI chip infrastructure buildout, automated test equipment, and a rebound in automation and healthcare markets.
Analog Devices’ strong operating cash flow has helped it return cash through regular quarterly dividend payments and share repurchases. In fiscal 2025, the company generated operating cash flow of $4.81 billion and free cash flow of $4.28 billion.
ADI pays out a quarterly dividend of 99 cents per share ($3.96 annualized), with a 1.43% yield at the current stock price. ADI’s payout ratio is 51%, with a five-year dividend growth rate of 10.31%. The company currently carries a Zacks Rank #2. (Check ADI’s dividend history here)
Image Source: Zacks Investment Research
Johnson & Johnson’s JNJ: Headquartered in New Brunswick, NJ, Johnson & Johnson is a leading provider of pharmaceuticals and medical devices worldwide. With more than 275 subsidiaries, its business model is extremely well diversified. Its diversification helps it to withstand economic cycles more effectively.
In 2026, J&J expects accelerated growth in the Innovative Medicine segment to be driven by its key products, such as Darzalex, Tremfya, Spravato and Erleada, as well as new drugs like Carvykti, Tecvayli and Talvey, and recently launched products, including Tremfya in inflammatory bowel disease, Rybrevant plus Lazcluze in non-small cell lung cancer and the newly approved drug, Inlexzo in bladder cancer. The company reported a $17.22 billion in cash from operating activities.
JNJ pays out a quarterly dividend of $1.3 per share ($5.2 annualized), with a 2.5% yield at the current stock price. JNJ’s payout ratio is 50%, with a five-year dividend growth rate of 5.39%. The company currently carries a Zacks Rank #2. (Check JNJ’s dividend history here)
Image Source: Zacks Investment Research
The Gap, Inc. GAP: With roughly 3,500 stores worldwide, The Gap, Inc. is a premier international specialty retailer offering a diverse range of clothing, accessories, and personal care products. Gap continues to benefit from strong brand performance and rising market share across its largest banners, supported by consistent progress on its brand reinvigoration strategy. Management remains focused on its four strategic priorities: driving financial and operational rigor, reinvigorating its brands, reinforcing its operating platform and supply chain, and energizing its internal culture.
The company reported net cash from operating activities of $607 million, with free cash flow of $280 million, underscoring its disciplined approach to business management. Gap pays out a quarterly dividend of 16 cents (66 cents annualized), with a 2.52% yield at the current stock price. GAP’s payout ratio is 29%, with a five-year dividend growth rate of 1.49%. The company currently carries a Zacks Rank of 2. (Check GAP’s dividend history here)
Image Source: Zacks Investment Research
Hewlett Packard Enterprise HPE: Headquartered in Spring, TX, Hewlett Packard Enterprise is a leading provider of essential enterprise technology. The company’s top line is benefiting from solid traction in the AI networking market. The acquisition of Juniper Networks underlines Hewlett Packard Enterprise’s relentless focus on fortifying its networking business, aligning with the burgeoning demand for high-growth solutions in the evolving tech landscape.
In the fourth quarter, HPE generated $2.5 billion in cash from operating activities and produced $1.9 billion in free cash flow, both increasing meaningfully from the prior-year period. HPE pays out a quarterly dividend of 14 cents (57 cents annualized), with a 2.33% yield at the current stock price. HPE’s payout ratio is 33%, with a five-year dividend growth rate of 2.21%. The company currently carries a Zacks Rank #3 (Hold). (Check HPE’s dividend history here).
Image Source: Zacks Investment Research
Zacks Naming Top 10 Stocks for 2026
Want to be tipped off early to our 10 top picks for the entirety of 2026? History suggests their performance could be sensational.
From 2012 (when our Director of Research Sheraz Mian assumed responsibility for the portfolio) through November, 2025, the Zacks Top 10 Stocks gained +2,530.8%, more than QUADRUPLING the S&P 500’s +570.3%.
Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2026. Don’t miss your chance to get in on these stocks when they’re released on January 5.
Be First to New Top 10 Stocks >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Analog Devices, Inc. (ADI) : Free Stock Analysis Report
Johnson & Johnson (JNJ) : Free Stock Analysis Report
The Gap, Inc. (GAP) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Johnson & Johnson

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