After several months of seemingly uninterrupted gains across popular stocks and major indices, volatility has returned to the market in force. Last Friday’s selloff saw the Nasdaq (NDX) tumble more than 800 points (-3.6%), while the S&P 500 (SPX) dropped 182 points (-2.7%), as renewed tariff concerns reignited fears of a potential trade war between the U.S. and China.
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Many of the high-flying technology and speculative growth stocks that had fueled recent market strength have since experienced even steeper declines. With many of these companies either unprofitable or trading at elevated valuations, they tend to be more vulnerable during sharp market corrections—and may still have further to fall.
For investors seeking to mitigate volatility and preserve capital, it makes sense to focus on blue-chip companies characterized by durable earnings growth, consistent revenue expansion, reasonable valuations, and reliable dividends.
One standout example is Johnson & Johnson (JNJ). The healthcare giant reported solid third-quarter results and raised its full-year guidance, signaling confidence despite the broader economic uncertainty. The stock’s performance compared against the S&P 500 (SPX) since the end of September suggests it can withstand volatility without breaking a sweat.
JNJ also trades at an attractive valuation, leaving little speculative froth in its share price. Most importantly, it remains a Dividend King—a company with decades of uninterrupted dividend growth—offering both stability and income in turbulent markets.
Simply put, Johnson & Johnson embodies the kind of resilient, dividend-paying blue-chip stock investors can rely on when volatility returns.
JNJ’s Post-Spinoff Transformation
Founded in 1886, Johnson & Johnson is a true blue-chip company that has consistently stood the test of time. Following the spinoff of its consumer health division in 2023, the company is now fully focused on two core segments: Innovative Medicine and MedTech.
The Innovative Medicine division—encompassing key therapeutic areas such as oncology, immunology, neuroscience, and cardiopulmonary—generated $57 billion in sales in the past financial year. Meanwhile, the MedTech segment, which includes cardiovascular devices, orthopaedics, surgical solutions, and vision care, contributed $31.9 billion in revenue.
Together, these two high-value segments position Johnson & Johnson as a diversified healthcare leader with strong growth potential across both pharmaceuticals and medical technology.
Q3 Earnings Show Durable Growth in an Uncertain Environment
Whether through its life-saving medicines or advanced MedTech devices, Johnson & Johnson’s products remain essential to consumers worldwide, making it a defensive stock well-positioned to sustain steady demand even during economic slowdowns or periods of uncertainty.
The company recently reported strong third-quarter results, with both core divisions delivering solid growth. Innovative Medicine revenue rose 6.8% year over year to $15.6 billion, while MedTech sales also climbed 6.8% to $8.4 billion. Overall, total revenue increased 6.8% to $24 billion, surpassing analyst estimates by $240 million. Earnings per share came in at $2.80, beating expectations of $2.76.
Reflecting confidence in its outlook, Johnson & Johnson raised its full-year revenue guidance from $93.45 billion to a range of $93.5 billion to $93.9 billion.
In addition, the company announced plans to spin off its MedTech orthopaedics business into a standalone entity called DePuy Synthes within the next 12 to 18 months. This move could provide shareholders with equity in a new company while allowing J&J to sharpen its MedTech focus on higher-growth, higher-margin categories. Analysts at JPMorgan praised the strategy, noting that it “should create a faster-growing J&J over time.”
Inexpensive Valuation Despite Share Price Momentum
Johnson & Johnson’s shares remain attractively valued, trading at approximately 17.5x 2025 earnings estimates—a notable discount to the S&P 500’s current multiple of 23x forward earnings. This lower valuation reinforces J&J’s status as a defensive blue-chip stock, offering investors stability at a reasonable price.
Despite its conservative profile, the stock has delivered impressive performance, rising 35% year-to-date and quietly outpacing both the S&P 500 and the Nasdaq over the same period.
Over 60 Years of Dividend Growth
Johnson & Johnson offers an appealing dividend yield of 2.66%, roughly double the S&P 500’s current yield of 1.68%.
Beyond its above-average yield, Johnson & Johnson stands out for the consistency and longevity of its dividend history. The company has paid dividends for 62 consecutive years and has raised its payout every single year during that time—a remarkable track record that few companies can match.
With more than six decades of uninterrupted dividend growth, Johnson & Johnson rightfully holds its place among the elite group of Dividend Kings, offering income investors reliability and steady long-term growth.
Is JNJ a Good Stock to Buy Now?
Turning to Wall Street, JNJ earns a Moderate Buy consensus rating based on 12 Buys, seven Holds, and zero Sell ratings assigned in the past three months. The average JNJ stock price target of $199.76 implies almost 5% upside potential over the coming 12 months.
A Safe Haven Amid Market Turbulence
Friday’s selloff served as a reminder that markets can turn volatile quickly—and that speculative, high-valuation stocks don’t rise forever. In such environments, investors would be wise to focus on blue-chip companies with durable earnings, stable cash flows, and consistent dividend growth.
Johnson & Johnson fits that profile perfectly. As a Dividend King with over six decades of consecutive dividend increases, the company combines a reasonable valuation with steady demand for its products—reinforced by its strong Q3 results and confident forward guidance.
Importantly, this isn’t a “value trap” trading cheaply due to poor performance. J&J shares are up more than 30% year-to-date, demonstrating that stability and growth can coexist. For investors seeking reliability amid volatility, Johnson & Johnson remains a compelling choice across market cycles.