<div id="readability-page-1"><div> <h2>Key Points</h2><ul><li>Johnson &amp; Johnson's business can perform well under the most challenging conditions.</li><li>The company's credit rating and dividend track record provide strong evidence of the business's strength.</li><li>While there are some risks it faces, the drugmaker remains a top long-term pick. </li><li>10 stocks we like better than Johnson &amp; Johnson ›</li></ul>We live in pretty volatile times marked by macroeconomic conflicts and worsening inflation, among other things. Equity markets have fared well this year despite these challenges, but it's always a good idea to prepare for market downturns by investing in robust companies that can navigate any environment. One top stock to consider investing in right now to stabilize a well-diversified portfolio is Johnson &amp; Johnson (NYSE: JNJ), a leading healthcare player. Let's get into why the drugmaker is such an attractive pick in the current landscape. <img src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-dXJsPWh0dHBzOi8vZy5mb29sY2RuLmNvbS9lZGl0b3JpYWwvaW1hZ2VzLzg2OTc3OS9qb2huc29uLWpvaG5zb24tbG9nby5wbmcmdz03MDA?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="700" height="466" original-src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-dXJsPWh0dHBzOi8vZy5mb29sY2RuLmNvbS9lZGl0b3JpYWwvaW1hZ2VzLzg2OTc3OS9qb2huc29uLWpvaG5zb24tbG9nby5wbmcmdz03MDA"/>Image source: The Motley Fool.Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an &#34;Indispensable Monopoly&#34; providing the critical technology Nvidia and Intel both need. Continue » <h2>It can weather every storm</h2>Several aspects of Johnson &amp; Johnson's business make it an outstanding stock to own during a market crash, an economic downturn, or both. Let's consider three of them. First, Johnson &amp; Johnson sells essential products that people depend on regardless of economic conditions, including pharmaceutical drugs and medical devices. No one wants to stop taking lifesaving medicines when the going gets rough. And because third-party payers help foot much of the bill for patients, many can still afford to take their meds when the purse strings tighten. Demand for the procedures that Johnson &amp; Johnson helps physicians perform with its devices also tends to remain high across the economic cycle. Crucially, Johnson &amp; Johnson is far more than a typical healthcare company that can withstand downturns because its products remain in high demand. It is one of the more diversified players in the sector. The drugmaker's pharmaceutical portfolio spans several categories. We can say the same about its medtech division. And Johnson &amp; Johnson also has a deep pipeline that allows it to score regular brand-new approvals or label expansions. Second, Johnson &amp; Johnson has a rock-solid balance sheet. Perhaps one of the best pieces of evidence for that is the company's AAA credit rating from S&amp;P Global. Not only is it higher than that of the U.S. Government, but it is also the highest available. So, no matter the crisis, it's more than likely that Johnson &amp; Johnson will be able to take care of its obligations. Third, Johnson &amp; Johnson is a Dividend King. Those are companies with 50 (or more) straight payout increases -- Johnson &amp; Johnson's streak is at 64. This once again highlights the strength of its underlying business, as paying dividends for that long, let alone raising them every year, is no easy feat. The regular payouts can also help mitigate market losses during a downturn.<h2>Johnson &amp; Johnson can overcome its challenges</h2>Even though Johnson &amp; Johnson has a solid business, there are at least two risks investors should keep in mind. One of them has been hanging over the company's head for a long time. Johnson &amp; Johnson is still dealing with thousands of lawsuits from plaintiffs who claim that its talc-based products gave them cancer. The pharmaceutical leader has tried several tactics to put most of these in the rearview mirror. So far, it has failed. Then, there is the potential impact of government price negotiations in the U.S. on Johnson &amp; Johnson's financial results.Regulators have already targeted several of the company's products for negotiation. If they pick even more in the future, it could become a serious headwind. Even with these problems, though, Johnson &amp; Johnson's shares are attractive. The company's legal issues haven't changed its credit rating, which strongly suggests these lawsuits won't financially ruin it. Even if there is a massive payout in the future, Johnson &amp; Johnson should be able to handle it. Regarding government price negotiations, Johnson &amp; Johnson is performing well so far despite that. The company is expecting its sales to grow by about 7% year over year (at the midpoint) in 2026 to $100.8 billion, even though government-negotiated prices for three of its products kicked in this year.Johnson &amp; Johnson has been around for over 100 years. Throughout its storied history, it has dealt with massive changes to the healthcare sector in the U.S., including the introduction of Medicare and Medicaid, and many others. The past is no guarantee of the future, but the company's strengths -- such as its vast, diversified portfolio and pipeline and innovative capabilities -- have allowed it to overcome similar challenges in the past and can do so again. So, investors should stay put. Johnson &amp; Johnson can navigate this landscape and deliver solid returns over the long run, especially for investors who reinvest the dividend. <h2>Should you buy stock in Johnson &amp; Johnson right now?</h2> Before you buy stock in Johnson &amp; Johnson, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Johnson &amp; Johnson wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $469,293!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,381,332!* Now, it’s worth noting Stock Advisor’s total average return is 993% — a market-crushing outperformance compared to 207% for the S&amp;P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of May 19, 2026. Prosper Junior Bakiny has positions in Johnson &amp; Johnson. The Motley Fool recommends Johnson &amp; Johnson. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. </div></div>

Johnson & Johnson (NYSE: JNJ) is highlighted as a strong investment choice due to its robust business model, AAA credit rating, and a history of 64 consecutive dividend increases. Despite facing legal challenges and potential government price negotiations, the company is expected to grow sales by 7% year-over-year by 2026. Its diversified portfolio and essential products position it well to navigate economic downturns, making it a reliable option for investors seeking stability.

nasdaq

Johnson & Johnson

Health Care Select Sector SPDR

iShares US Pharma

SPDR S&P Health Equip

iShares Global Healthcare

VG Health

iShares US Medical Devices

NVIDIA

Intel

S&P Global

NVIDIA Corporation

Meet the Dividend King With a Higher Credit Rating Than the U.S. Government