The Only Healthcare Stock I'd Buy and Never Sell Might Be Johnson & Johnson

It's easy to get caught up in the latest hot stock, the newest trend, the flashiest sector. However, if you want steady, dependable income and a strong total return, buy Johnson & Johnson (NYSE: JNJ).

Yes, I know that's a boring statement, but if you want the closest thing to a guarantee other than death and taxes, the healthcare giant is the way to go. That's why I bought J&J shares years ago, and I don't ever plan on selling them.

Why do I love Johnson & Johnson's stock? Let me count the ways.

Reason No. 1: It has raised its dividend for 63 consecutive years

Let that sink in for a moment. The company is a Dividend King, one of a small group of companies that have raised their payouts for 50 or more consecutive years. It began raising its dividend in 1963, when John F. Kennedy was president. And amid all the upheaval since -- wars, economic downturns, and major changes in healthcare -- it has steadily kept boosting it.

Over the past decade, it has consistently provided single-digit percentage dividend increases, but those added up to a 73% total increase over that period. Last year, it raised its quarterly payout by 4.8% to $1.30 per share. At the stock's current price, that gives it a yield of 2.1%, almost double the S&P 500's average yield in December of 1.15%.

Moreover, the company's payout ratio of 46.3% shows it has plenty of room to continue those increases. While it paid out $12.4 billion in dividends in 2025, it produced about $20 billion in free cash flow.

Image source: Getty Images.

Reason No. 2: Its total return outpaced the S&P 500 over the past year

Johnson & Johnson shares delivered a total return of more than 60% over the past year, about five times the return of the S&P 500. That's pretty good for a "boring" stock, though in most years, its total returns have been far more pedestrian.

The company did a lot right this year. Revenue rose 6% to $94.2 billion, while earnings per share (EPS) grew by 90.5% to $11.03. Adjusted EPS was $10.79, up 8.1%. In 2026, management is guiding for revenue in the $100 billion to $101 billion range, which would be a rise of 6.7% at the midpoint. It projects operational EPS to be between $11.43 and $11.63, an increase of 6.9% at the midpoint.

Reason No. 3: It isn't stuck in the past

Yes, the company has a 140-year history, but it also has its eyes firmly fixed on the future. It just announced plans to spend $1 billion on a next-generation cell manufacturing facility outside Philadelphia.

The new plant will support Johnson & Johnson's objective of making the majority of its advanced medicines within the U.S., which will allow it to meet domestic demand while reducing its tariff costs. The company said it plans an overall outlay of $55 billion in U.S. manufacturing, research and development (R&D), and technology through early 2029.

J&J consistently spends big on R&D -- $14.6 billion in 2025 alone -- and that pays off. Last year, it had 28 programs with $1 billion or more in sales. It also had 51 therapies approved in its innovative medicine division, and 15 new product launches in its medtech division.

Attributes like those may not be exciting, but they're why Johnson & Johnson is a stock I'll happily stick with for the long haul.

James Halley has positions in Johnson & Johnson. The Motley Fool recommends Johnson & Johnson. The Motley Fool has a disclosure policy.