Johnson & Johnson (JNJ 0.65%) is an iconic global healthcare company. It was originally formed in 1866 when three brothers (Robert, Edward, and James Johnson) founded the company to focus on producing bandages and baby products. It has since grown into one of the largest and most well-regarded healthcare companies in the world.
Johnson & Johnson has two business units:
- Innovative Medicine: Johnson & Johnson develops and manufactures several pharmaceuticals. It makes therapies for oncology, immunology, neuroscience, pulmonary hypertension, cardiovascular, and infectious diseases.
- MedTech: The medical technology division develops and markets products for orthopedics, surgery, intervention solutions, and vision.
In 2023, Johnson & Johnson completed the spinoff of its former consumer health products division to focus on pharmaceuticals and medical technology. The new company, Kenvue (KVUE -0.64%), sells well-known brands like Listerine, Band-Aid, Tylenol, and Zyrtec.
Here's a step-by-step guide on how to buy shares of Johnson & Johnson and some factors to consider before investing in the healthcare stock.
How to buy Johnson and Johnson stock
How to buy Johnson & Johnson stock
To buy shares of Johnson & Johnson, you must have a brokerage account. If you need to open one, these are some of the best-rated brokers and trading platforms. Here's a step-by-step guide to buying Johnson & Johnson stock using the five-star-rated platform Fidelity.
- Open your brokerage app: Log into your brokerage account where you handle your investments.
- Search for the stock: Enter the ticker or company name into the search bar to bring up the stock's trading page.
- Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this stock.
- Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
- Submit your order: Confirm the details and submit your buy order.
- Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.
Should I invest?
Should I invest in Johnson & Johnson?
Before buying shares of Johnson & Johnson, you need to determine whether the company's stock is a good investment. Here are some reasons why you might want to consider buying shares of Johnson & Johnson:
- You believe that Johnson & Johnson will benefit from the continued growth in healthcare spending.
- You understand how Johnson & Johnson makes money.
- You think Johnson & Johnson stock can outperform the S&P 500 over the long term.
- You want to earn dividend income.
- You're retired or retiring soon and want to own shares in a relatively stable company.
- You understand that Johnson & Johnson stock can lose value.
On the other hand, here are some factors to consider that might make you decide not to buy shares.
- You want to avoid investing in a big pharma company.
- You're younger and want to invest in companies earlier in their growth phase than the more than century-old Johnson & Johnson.
- You don't need dividend income.
Is J&J profitable?
Is Johnson & Johnson profitable?
Profit growth helps power stock price appreciation over the longer term. It's an ideal area for beginning investors to focus on before buying shares of a company.
Johnson & Johnson is a very profitable company. The healthcare giant produced $14.1 billion of net earnings in 2024, a 5.6% increase from 2023. It also produced $19.8 billion in free cash flow. The company has an excellent long-term record of increasing its revenue, income, and shareholder value.
Revenue
Dividends
Does Johnson & Johnson pay a dividend?
Johnson & Johnson has a distinguished track record of paying dividends. In early 2024, the healthcare giant delivered its 62nd consecutive year of increasing its dividend. That puts it in the elite group of Dividend Kings, companies that have increased their dividend payments for 50 or more years. It also makes Johnson & Johnson one of the best healthcare dividend stocks.
ETFs with exposure
ETFs with exposure to Johnson & Johnson
Instead of actively buying shares of Johnson & Johnson directly, you can passively invest in the healthcare company through a fund holding its shares.
Johnson & Johnson is one of the largest traded companies by market capitalization. It's a widely held stock. Johnson & Johnson is in several stock market indexes, including the Dow Jones Industrial Average and S&P 500 Index. As a result, index funds and exchange-traded funds (ETFs) that benchmark their returns against those indexes hold Johnson & Johnson stock.
According to ETF.com, 369 ETFs held 263.6 million shares of Johnson & Johnson as of early 2025. The iShares U.S. Pharmaceuticals ETF (IHE 1.74%) had the highest exposure to Johnson & Johnson at a 22% portfolio weighting in the ETF. That makes it a top option for investors seeking to invest passively in Johnson & Johnson (and the broader U.S. pharmaceuticals sector) without directly buying shares.
Exchange-Traded Fund (ETF)
Stock splits
Will Johnson & Johnson stock split?
As of early 2025, Johnson & Johnson had not announced an upcoming stock split. However, the company has completed several stock splits over the years. Here's a snapshot of the JNJ stock split history:
| Split date | Stock split |
|---|---|
| June 2001 | 2-for-1 |
| June 1996 | 2-for-1 |
| June 1992 | 2-for-1 |
| May 1989 | 2-for-1 |
| May 1981 | 3-for-1 |
| May 1970 | 3-for-1 |
| June 1967 | 200% Stock Dividend |
| January 1959 | 2 1/2-for-1 |
| March 1951 | 5% Stock Dividend |
| November 1949 | 5% Stock Dividend |
| November 1948 | 5% Stock Dividend |
| May 1947 | 100% stock Dividend |
In addition to those stock splits, Johnson & Johnson split into two separate publicly traded companies by spinning off its consumer business (Kenvue) in 2023.
Related investing topics
The bottom line on investing in Johnson & Johnson stock
Johnson & Johnson is a global healthcare giant. It should benefit from the continued growth in healthcare spending in the coming years. That could enable the company to continue growing its earnings and dividend. Those two drivers should help it produce attractive total shareholder returns over the long term. It could be a good stock to buy for people seeking steady growth from the healthcare sector.
FAQs
FAQs on investing in Johnson & Johnson stock
Can you buy shares in Johnson & Johnson?
You can buy shares of Johnson & Johnson with a brokerage account.
Is Johnson & Johnson a good investment?
Johnson & Johnson can be a good investment over longer periods. For example, it has delivered a 12.2% annualized total return since 1990 compared to 10.5% for the S&P 500. However, it has more recently underperformed the market.
How long has J&J paid a dividend?
As of early 2025, Johnson & Johnson had paid a growing dividend for 62 consecutive years.
What does a J&J split mean for shareholders?
In 2023, Johnson & Johnson completed a split into two companies by spinning off its consumer healthcare brands into a separate publicly traded company (Kenvue). The legacy Johnson & Johnson now focuses on pharmaceuticals and medical technology.
The J&J split means shareholders no longer own a company with consumer healthcare brands.
