How did these stocks perform compared to the S&P 500?

Merck is up 42% year to date, outperforming the S&P 500 by about 29 percentage points. Amgen is up 34%, beating by 21 points, and Johnson & Johnson is up 28%, beating by 15 points.

What are their dividend yields?

Merck pays a forward annual dividend of $3.40 per share, yielding about 2.17%. Amgen pays $10.08 per share, yielding about 2.3%. Johnson & Johnson pays $5.36 per share, yielding about 2%.

AI in HealthcareAI Stocks & MarketsTop Companies' AI MovesTop Companies AIAug 29, 2026Aug 30, 2026, 06:32 JST

Merck, Amgen, JNJ Beat S&P 500 by 29 Points

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3 Key Points

What happened
Merck & Company, Amgen, and Johnson & Johnson are highlighted as AI-linked healthcare stocks that have outperformed the S&P 500 this year. Merck stock is up 42% year to date, beating the market by about 29 percentage points. Amgen is up 34%, beating the market by around 21 points, and Johnson & Johnson is up 28%, outperforming by 15 points.
Why it matters
These companies combine AI-driven drug discovery and medical technology with steady dividends, offering income and growth outside the usual AI trade. Healthcare demand is seen as permanent, making these businesses durable. Merck partners with Google Cloud for AI, Amgen uses NVIDIA tech to predict protein properties, and Johnson & Johnson runs the Polyphonic AI Fund for Surgery.
What to watch
Each stock pays a forward annual dividend and holds a Moderate Buy rating from analysts. Merck pays $3.40 per share (about 2.17% yield), Amgen pays $10.08 per share (about 2.3%), and Johnson & Johnson pays $5.36 per share (about 2%). Amgen is trading close to its high target price, while Merck and JNJ have potential upside.

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Context & Analysis

The article uses Barchart's stock screener to find biotech and healthcare companies that combine AI exposure with dividends and analyst support. The screen required stocks to beat the S&P 500 by at least 1% year to date, have a forward dividend yield of 1% or higher, at least 12 analysts covering them, and a Moderate to Strong Buy rating. Five companies matched, but the piece focuses on the top three by outperformance.

Merck's AI push includes a Google Cloud partnership for research and operations, while Amgen uses NVIDIA technology to predict protein properties for faster drug discovery. Johnson & Johnson's AI fund targets surgical workflow optimization. These initiatives tie the companies to practical AI applications in healthcare, from drug pipelines to operating rooms.

All three stocks are rated Moderate Buy by analysts, with Amgen trading near its high target price, suggesting limited upside. Merck and JNJ retain modest upside per their targets. The article positions these companies as durable investments because healthcare demand is unlikely to disappear, offering a mix of innovation and income for investors seeking AI exposure outside tech giants.

FAQ

How did these stocks perform compared to the S&P 500?: Merck is up 42% year to date, outperforming the S&P 500 by about 29 percentage points. Amgen is up 34%, beating by 21 points, and Johnson & Johnson is up 28%, beating by 15 points.
What are their dividend yields?: Merck pays a forward annual dividend of $3.40 per share, yielding about 2.17%. Amgen pays $10.08 per share, yielding about 2.3%. Johnson & Johnson pays $5.36 per share, yielding about 2%.

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