15 Best S&P 500 Dividend Stocks to Buy in 2026

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3. Johnson & Johnson (NYSE:JNJ)

Number of Hedge Fund Holders: 103

Dividend Yield as of January 21: 2.43%

Johnson & Johnson (NYSE:JNJ) posted its fourth-quarter 2025 earnings on January 21 and followed it up with a 2026 outlook that came in ahead of Wall Street expectations. What stood out is that the guidance still looks strong even with a couple of big headwinds hanging over the business, such as a drug pricing deal with the Trump administration and about $500 million in tariff-related costs expected in its medical devices segment.

The company said the drug pricing agreement reached with President Donald Trump earlier this month, which is aimed at lowering prices for certain prescription medicines, could end up costing it “hundreds of millions of dollars.”

Even with that impact, the company is looking for 2026 sales of $99.5 billion to $100.5 billion. That’s higher than analysts were projecting at around $98.9 billion, based on LSEG data. On the earnings side, it expects full-year profit in the range of $11.43 to $11.63 per share, slightly above the Street’s $11.45 estimate.

CEO Joaquin Duato struck an optimistic tone on the earnings call, saying the company expects to grow faster in 2026 than it did in 2025. He also said they can already see a clear path toward reaching double-digit growth by the end of the decade.

Johnson & Johnson (NYSE:JNJ) and its subsidiaries operate across the healthcare space, developing and selling a wide range of products, including medicines and medical devices.

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