12 Most Profitable Dividend Stocks to Buy in 2026

7. Johnson & Johnson (NYSE:JNJ)

Net Profit Margin: 27.26%

Net Income TTM: $25.12 Billion

On January 23, Guggenheim analyst Vamil Divan raised his price target on Johnson & Johnson (NYSE:JNJ) to $240 from $227. The firm reiterated a Buy rating. The move followed what he described as “solid” fourth-quarter results, along with initial 2026 guidance that came in slightly ahead of sell-side expectations.

After the quarter, Divan said he made several tweaks to his model. Those included lifting near-term forecasts for Tremfya, factoring in faster erosion for Stelara, and raising estimates for a number of newer products. Even with those adjustments, Johnson & Johnson remains a Top Pick in the large-cap biopharma space in his view.

The company reported its fourth-quarter 2025 earnings on January 21 and paired the release with a 2026 outlook that landed above Wall Street’s expectations. What stood out was that the guidance held up despite a few meaningful headwinds. Among them are a recent drug pricing agreement with the Trump administration and roughly $500 million in tariff-related costs tied to the medical devices business.

Johnson & Johnson said the pricing deal reached earlier this month, which is intended to lower costs for certain prescription drugs, could end up costing the company “hundreds of millions of dollars.”

Even with that pressure baked in, management is forecasting 2026 sales between $99.5 billion and $100.5 billion. That compares with analyst expectations of about $98.9 billion, according to LSEG. On earnings, the company expects full-year profit of $11.43 to $11.63 per share, slightly ahead of the Street’s $11.45 estimate.

Johnson & Johnson (NYSE:JNJ) operates across healthcare through its Innovative Medicine and MedTech segments, spanning drug development, medical devices, and a broad portfolio of products sold globally.