J&J Stands Out as Better Dividend Play Amidst Talc Scandal

Johnson & Johnson (JNJ +1.10%) and Kenvue (KVUE +0.22%), both healthcare companies, are attractive options for dividend investors seeking a defensive play.

J&J is a well-established Dividend King with 64 consecutive years of dividend increases, offering a 2% forward yield based on its $5.36 per share annual payout.

However, the company faces significant legal liabilities related to its talc-based baby powder, which could impact cash flow and future dividend payments.

Kenvue, spun off from J&J in November 2025, offers a higher forward yield of 4.71% but is expected to be acquired by Kimberly-Clark in a $48.7 billion deal, creating uncertainty about its future financials and dividend prospects.

Despite this, Johnson & Johnson's long history of dividend growth and cash flow generation make it the better buy-and-hold pick for true investors seeking a steady income stream.