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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.
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