Worried About a Recession? 1 Healthcare Dividend Stock That Has Thrived In Every Market Crash

TradingKey - With markets slipping into correction territory and recession fears back in the headlines, investors are scrambling for safety. The combination of massive tariff threats from President Trump, inflation worries, and market uncertainty has put pressure on stocks. 

If history tells us anything, it's that some companies weather economic storms better than others, with certain sectors providing defensive in nature if a recession hits. One of those sectors is healthcare and one of the biggest healthcare companies around is Johnson & Johnson (NYSE: JNJ), a company that also pays a decent dividend to shareholders.

This healthcare giant has raised its dividend for 62 consecutive years and outperformed the market in every major crash, from the Dotcom Bubble to the 2008 Financial Crisis. Not only that but Johnson & Johnson has seen its share price rise 13.2% so far in 2025, while the S&P 500 Index has plunged 5.9% over the same time period.

With a solid 3% dividend yield, and a business that people rely on no matter what the state of the economy is, Johnson & Johnson is the kind of stock you want in your portfolio when uncertainty strikes.

Business that delivers in a recession economy

When recessions hit, people cut back on vacations, new gadgets, and luxury spending. But they still need medicine, medical treatments, and everyday healthcare products. That’s why Johnson & Johnson has been a safe-haven dividend stock for decades.

During the worst financial crisis in the last 80 years – the Global Financial Crisis (GFC) of 2008-2009 – Johnson & Johnson didn’t just survive. It increased earnings while most companies saw profits collapse. 

Indeed, it also held up better versus the index, with the S&P 500 plunging 57%, but Johnson & Johnson’s stock only declining 35%. Meanwhile the company managed to keep growing its dividend.

That resilience made it easier for shareholders to hold onto their shares of the company while the market tanked. And it’s not just one crisis. Johnson & Johnson has outperformed the market in every major downturn, including the Dotcom Bubble (2000-2002) – while tech stocks crashed, the share price held steady.

This reliability is why long-term investors love Johnson & Johnson. As an investor, you can sleep better at night knowing it has stood the test of time.

Dividend growth that keeps paying you more

Johnson & Johnson is not just a defensive stock. It’s also a Dividend King, making it part of a rare group of stocks that have raised their dividend for 50 consecutive years or longer. Johnson & Johnson has done even better than that as it’s actually raised its dividend for 62 straight years.

With a solid dividend yield of around 3% right now, the company’s shares give investors steady income to “wait it out” while markets are volatile. But even waiting doesn’t mean you get paid the same.

Johnson & Johnson’s 10-Year compound annual growth rate (CAGR) of its dividend is 5.9%, meaning your payouts grow every year and well above the headline rate of inflation in most developed economies.

Lastly, with 62 Years of dividend increases, it’s clear that Johnson & Johnson’s business is not only rock solid but also reliable – even during recessions.

Strong business but with room to grow

Even though Johnson & Johnson is a 138-year-old company, it’s far from slowing down. It’s investing heavily in medical technology and pharmaceuticals, focusing on areas like:

• Surgical robotics (next-gen surgery innovations)
• Cardiovascular care (life-saving heart treatments)
• Neuroscience & oncology (cancer and brain health advancements)

The company recently spent US$32 billion on acquisitions to strengthen its business in these emerging areas, helping to ensure that it remains a healthcare leader for decades to come.

Risks to consider

Of course, no stock is risk-free and Johnson & Johnson has some challenges to navigate. These include:

• Patent expirations: Some of its blockbuster drugs face generic competition in the coming years.
• China’s pricing pressures: Government policies in China could squeeze profits.
• Litigation risks: Johnson & Johnson has faced lawsuits, though it has a history of managing legal challenges well.

Despite these risks, Johnson & Johnson’s diversified business, strong cash flow, and history of smart management make it a stock that can handle turbulence better than most large cap companies.

A stock to own when markets get rough

With recession fears rising and markets looking shaky, owning a reliable dividend stock like Johnson & Johnson can help you stay calm amid the chaos.

If you’re looking for a rock-solid dividend stock to anchor your portfolio, Johnson & Johnson is one of the best defensive picks out there. 

So, even if the rest of the market is seeing red, holding Johnson & Johnson shares can help provide some ballast to your portfolio as you’ll still “get paid” in dividends to wait it out.