23x forward earnings is where Johnson & Johnson (NYSE: JNJ) currently trades, a 380-basis-point premium to the healthcare sector's 19.2x average and 230 basis points above Abbott Laboratories' (NYSE: ABT) 20.7x multiple, as the two Dividend Kings split the tape in 2026. JNJ has outrun broader equities this year; ABT has lagged. The spread in their dividend records follows the same pattern: 64 consecutive annual increases for JNJ against 54 for ABT. Dividend Kings are companies that have raised their payouts for at least 50 straight years.
Abbott's reset and what it cost
Abbott's diagnostics and nutrition segments have underperformed in recent periods, and lawsuits alleging its baby formula caused harm to premature infants have pressured the stock and the company's public image. The primary response has been acquisitive. Earlier this year Abbott paid $21 billion in cash for Exact Sciences, bringing Cologuard, a non-invasive colorectal cancer screening test, into its diagnostics portfolio. FreeStyle Libre, Abbott's continuous glucose monitoring line for diabetes patients, remains the clearest organic growth driver in its medical device segment.
Where JNJ stands
Johnson & Johnson lost U.S. patent exclusivity on Stelara, its immunosuppressant, in 2025 and faces government-led drug price negotiations targeting several of its medicines. Revenue has continued to grow. Full-year sales could come in slightly above $100 billion, which would mark only the second time a biopharmaceutical company has reached that level. Two regulatory milestones broadened the pipeline this year: Icotyde, the first oral drug targeting the IL-23 receptor approved for plaque psoriasis, and Ottava, a robotic-assisted surgery system. The robotic surgery market is seen as underpenetrated, giving Ottava room to become a durable growth driver. Progress on resolving thousands of talc-related lawsuits removes a long-running legal overhang.
| Metric | JNJ | ABT |
|---|---|---|
| Dividend streak (years) | 64 | 54 |
| Forward P/E | 23.0x | 20.7x |
| Premium to sector avg (19.2x) | +380 bps | +150 bps |
| YTD tape | Outperformed | Lagged |
The analyst comparison concluded JNJ is the stronger pick, pointing to higher revenue and earnings and a pipeline with multiple recently cleared products. A note on Abbott's recent top-line momentum: it partly reflects the Exact Sciences transaction rather than organic acceleration.
Both are viewed as sound options for long-term income investors. The 10-year gap in consecutive dividend increases, 64 for JNJ and 54 for ABT, is the sharpest single number separating them.