From Yahoo Finance · · 1m 30s
The Dividend King hiding in your medicine cabinet
Kenvue pays 4.68% and has raised its dividend for 64 straight years, even as a buyout looms.
In brief
Kenvue pays 4.68% and has raised its dividend for 64 straight years, even as a buyout looms. Kenvue's yield is backed by 64 years of increases and boring, recession-proof brands, and the Kimberly-Clark deal pairs it with another Dividend King rather than threatening the payout. Originally reported by Yahoo Finance.
A Dividend King in disguise
Kenvue was spun off from Johnson & Johnson only three years ago. Count its years as J&J's consumer health arm and the dividend has risen 64 years running.
“it has increased its dividend for 64 consecutive years”
The yield does the talking
At the current share price Kenvue yields 4.68%. That is more than four times the S&P 500 average and nearly double what the typical Dividend King pays.
Brands people buy in a slump
Tylenol, Motrin, Listerine, Band-Aid, Neutrogena and Zyrtec are not discretionary purchases. Demand for them holds up whatever the economy is doing.
“sticky, steady consumer demand regardless of macroeconomic cycles”
Slow growth, steady numbers
Second quarter revenue hit $3.95 billion, up 3% year over year, with earnings of $0.24 per share, up 9%. Nobody is calling this a growth stock.
Kimberly-Clark is buying it
If regulators approve, Kimberly-Clark absorbs Kenvue, which puts a question mark over the dividend. The logic is scale and cost savings across the combined business.
Either way you get paid
Kimberly-Clark is a Dividend King too, with 54 straight years of increases and a 5.23% yield. Deal or no deal, the income case holds.
“buying Kenvue for the dividend makes sense whether the deal is approved or not”
What to remember
Kenvue's yield is backed by 64 years of increases and boring, recession-proof brands, and the Kimberly-Clark deal pairs it with another Dividend King rather than threatening the payout.
