Johnson & Johnson (NYSE: JNJ) is poised to grow faster by 2030 than many investors anticipate, driven by strategic changes and innovations within its core businesses. The company recently separated its slower-growing consumer health segment, allowing it to focus more on its faster-growing biopharma and medtech divisions. This move has already led to a slight increase in its growth outlook for fiscal year 2023, and it is expected to drive more innovative and lucrative product launches in the coming years.
The medtech division is particularly promising, with the recent approval of the Ottava robotic surgery system by the U.S. Food and Drug Administration. This system, which competes with Intuitive Surgical (NASDAQ: ISRG), is expected to make a meaningful financial impact by the end of the decade. Johnson & Johnson also plans to separate its orthopedics division, further boosting sales growth within medtech.
Despite these positive developments, Johnson & Johnson faces some risks, including government-led price negotiations in the U.S. and ongoing talc-based product lawsuits. However, the company has proposed a $5.5 billion settlement to address most of these lawsuits and has a strong track record of overcoming such obstacles with its deep pipeline and diversified drug portfolio.
Overall, Johnson & Johnson remains a solid stock to buy and hold, with a streak of 64 consecutive annual dividend increases, making it a Dividend King. While it may not be among the top picks for growth-oriented investors, its strategic changes and innovations could lead to faster growth than expected by 2030.