JNJ Outshines KVUE as Dividend Investors Seek Stability

Johnson & Johnson and Kenvue are two well-established healthcare companies that have been increasing their dividend payouts for decades.

J&J has a long history of consistently raising its dividends, with 64 consecutive annual increases. In fact, 2026 marks the company's 64th straight year of dividend growth, with a forward yield of 2%. The stock trades at around a 31 price-to-earnings ratio, but analysts rate it a 'Moderate Buy' with a $320 high target price.

Kenvue, on the other hand, offers a higher yield of 4.71%, but its pending acquisition by Kimberly-Clark creates uncertainty about its dividend outlook. The company is rated a consensus 'Hold' by Wall Street analysts, who are cautious due to Kenvue's mature and slow-growing consumer staple brands.

While both companies have their strengths and weaknesses, Johnson & Johnson wins as the better buy-and-hold pick for true dividend investors. J&J has a sufficiently diverse business model and can continue increasing its dividend despite having billions in legal liabilities on the books.