Ken Griffin's Citadel added 146% to JNJ in Q1, now holding 1.93M shares. The pharma giant's 2% dividend yield, 28 blockbuster drugs, and 50+ years of dividend growth appeal to cautious investors.
Ken Griffin’s Citadel added 146% to its Johnson & Johnson (JNJ) position in the first quarter, according to a 13F filing. The hedge fund now holds 1,930,976 shares. The position, at 0.08% of the portfolio, has been in Citadel’s books since 2017.
The filing alone doesn’t explain the move. The Motley Fool, which first reported the increase, pointed to JNJ’s shift away from consumer health. The company spun off its Band-Aid and Tylenol business as Kenvue in 2023 to focus on pharmaceuticals and medtech. That bet has paid off. Revenue in the latest quarter rose nearly 10% to more than $24 billion. Innovative medicine sales climbed 11%. Medtech sales advanced more than 7%.
JNJ has 28 products or platforms that each generate at least $1 billion annually. The breadth matters. When the immunology blockbuster Stelara lost exclusivity last year, sales fell 41%. Other drugs picked up the slack. Total sales still rose 6% for the year. The company said the Stelara patent cliff was “in the rearview mirror.”
That product diversity, plus the fact that medical treatments are a staple, gives JNJ a defensive buffer. The stock is also a Dividend King, having raised its payout for more than 50 consecutive years. The current dividend of $5.36 per share yields 2%, compared with the S&P 500’s 1.1%.
AlphaScala rates JNJ at 45 out of 100, a Mixed label, reflecting the sector’s steady but unspectacular growth profile. The Healthcare sector stock is up 4% today.
For investors who prize income and stability over growth, the combination of a 2% yield, a 50-year dividend streak, and a portfolio that doesn’t depend on any single drug makes JNJ a low-risk holding. Griffin’s long-term presence in the stock suggests he sees the same logic.
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