Johnson & Johnson Sees a Path to Double-Digit Growth by 2030. Is the Dividend King a Buy?
The business has undergone major changes in recent years, and these might pay off over the medium term.
Johnson & Johnson (JNJ -0.26%) has long been a stalwart of the pharmaceutical industry. Recently, the company has embarked on a strategic reorganization, part of which involves the spinoff of its consumer health division. This move is expected to contribute to the company's overall growth trajectory. In the first nine months of the year, the company reported impressive sales of $74.8 billion, reflecting a year-over-year growth of 7.4%.
Despite facing competition from biosimilars, such as Stelara, which lost its U.S. patent exclusivity in 2025, Johnson & Johnson has managed to maintain strong sales, with Stelara alone generating $2.1 billion in revenue. Looking ahead, the company's management anticipates that Johnson & Johnson could achieve double-digit sales growth by 2030, thanks to a pipeline of new products expected to generate more than $20 billion in peak sales.
These include Icotyde, an oral pill for plaque psoriasis, and several cancer drugs like Inlexzo and Lazcluze. Additionally, Johnson & Johnson's medical device segment, including the recently cleared Ottava robotic-assisted surgery device, shows promise. Furthermore, the company has made significant strides in resolving a long-standing legal dispute over the use of talc, which has resulted in a $5.5 billion settlement.
Lastly, Johnson & Johnson's consistent dividend increases over the past 64 years make it a Dividend King, providing investors with a reliable income stream. Given these factors, the stock appears to be a compelling buy for long-term investors.
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