Kenvue A new name for an iconic consumer health company

While it’s true that the company has decades of decent performance as a unit of Johnson & Johnson, part of the reason for the spinoff was to grant Kenvue more organizational leeway to focus on growth, as well as return capital to shareholders. Though there’s little reason to believe that it would fail to continue to do that now that it’s separate from J&J, management’s promises simply haven’t had enough time to be fulfilled. And, considering that J&J still owns 90% of the company, it’s questionable how much new organizational leeway it’ll actually have. The company also warns investors that it may continue to be subject to claims that fall outside of the previously indemnified Talc-Related Liabilities given that Kenvue still sells talc products in countries around the globe. The sale of these products will be discontinued in 2023, but the company still warns that litigation that isn’t covered by the indemnity remains a possibility and could adversely impact the newly-formed business.

  1. Then you can reinvest your dividends confidently and watch your wealth grow.
  2. While its share price is down, the experiential property owner is growing briskly.
  3. They are well established businesses that have historically produced steadily increasing cash flow and, for shareholders, rising cash returns.
  4. J&J will generally be able to control matters that shareholders vote on, such as the election of directors to Kenvue’s board, the filing said.

It isn’t an attractive option for growth investors, and while the dividend could be relatively high out of the gate, the risk the company faces with respect to talc liabilities negates those positives for me. Investors who are interested in owning the stock may want to see how the company does in its first few quarters before buying shares of the business to see how it performs, as there’s certainly no rush to buy it now. In its prospectus, Kenvue says it holds “leadership positions” in the consumer health market, owning top brands in pain management (Tylenol), facial care (Neutrogena), mouthwash (Listerine), and many other categories. The benefit for investors is that the business has some brand power, which in turn could give it pricing power and make it a potentially resilient company to invest in amid inflation. Strong diversification is one of the things investors can expect to get from owning the healthcare stock.

I’m Putting My Cash Stockpile to Work on These 3 Stocks

The jury also provided an advisory verdict to the judge that all asserted claims of both patents are valid under 35 U.S.C. Sec. 101. A schedule will be set for further proceedings to determine whether CareDx’s future sales of new versions of AlloSeq and AlloSure also infringe the asserted Natera patents. Dr. Bender is a board-certified oncologist who brings more than 40 years of experience in hematological malignancy with a special focus on multiple best linux for network engineers myeloma (“MM”). He received his medical degree from the UCLA School of Medicine and completed his internship and residency at UCLA-Harbor General Hospital followed by a hematology/oncology fellowship at the National Cancer Institute. His past titles include Medical Director for Hematology/Oncology for Quest Diagnostics, Medical Director for Hematology/Oncology for Kaiser Permanente, and Chief Medical Officer for both Agendia and Signal Genetics.

However, the company lacks the margins of its competitors, and a profitable company is not always a good stock. At its expected valuation, KVUE looks fully valued and does not provide investors with much upside potential, as I’ll illustrate with my reverse discounted cash flow (DCF) model below. This not only generates investment capital for the healthcare technology company but also drives value for shareholders and investors.

Dr. Bender has also served on the executive board of the American Cancer Society and has been retained by the FDA as a member of the Hematology and Pathology Devices Advisory Committee. He has authored more than 80 peer-reviewed scientific articles and book chapters. (d) Adjusted results in 2023 and 2022 exclude net gains/losses on investments. Adjusted results in 2022 also exclude $26 of losses on the early extinguishment of debt and $67 of net gains on derivative instruments to address certain foreign currency risks. Adjusted operating income for the full year was $9.81 billion, compared with $10.99 billion a year-ago. GAAP operating income for 2023 was $6.86 billion, compared with $8.39 billion a year-ago.

And, even more fitting, “K” comes after “J” in the English alphabet, a subtle nod to Kenvue as the name of the consumer health sector’s next chapter. Then, with an eye towards global growth, we created the brand’s Chinese name, which successfully achieved phonetic similarity with the English name. Paul Ruh, J&J’s chief financial officer of consumer health and a former PepsiCo executive, will serve as CFO, and Meredith Stevens, J&J’s worldwide vice president of the company’s consumer health supply chain department, will serve as COO. Thibaut Mongon, J&J’s executive vice president and worldwide chair of consumer health, will serve as CEO of the newly public company. Each of the three divisions was profitable on an adjusted operating income basis, the company said in the filing.

Your use of the information on this site is subject to our Terms of Service in the Legal Notice. You should view the Media section in order to receive the most current information made available by Kenvue. Contact Us with any questions or search this site for more information. The company has otherwise gotten off to a healthy start as an independent public company. In the third quarter, it reported $3.9 billion in sales, a 3.3% year-over-year increase. The oil giant’s stock has fallen about 20% over the last 12 months, weighed down by oil prices and its pending acquisition of rival Hess.

Not all brands below are marketed or sold by Kenvue in the United States, and this is not a full list of all brands sold globally by Kenvue. “Investors are questioning whether the risk/reward now skews to the upside,” the analysts say, noting that “greater visibility on the return to the company’s long term  algorithm may be needed in order to get shares moving in the right direction.” The new company is expected to begin trading on May 4 on the New York Stock Exchange under the trading symbol KVUE. With its big day less than a week away, investors are watching keenly as KVUE stock gears up to start trading. Full details of the results are available in a separate press release issued this morning by Johnson & Johnson. Now, all investors, not just Wall Street insiders, can access trustworthy research on the earnings and valuation of stocks, bonds, ETFs, and mutual funds.

Iconic brands, extraordinary teams

We’re driven to win for those we serve, and when we care fiercely for them and one another, we can deliver the best possible care. Together, we create an inclusive place where we can bring our whole selves. Our committed collaboration fuels our relentless external competitive drive — because the stronger our bonds are, the stronger our brands are, too.

In 2022, sales of those products brought in $15 billion, and there isn’t much reason to believe that sales will increase significantly in the near term. After all, you probably aren’t going to be buying a lot more mouthwash, moisturizer, sunscreen, or shampoo anytime soon. Plus, you (and everyone else) almost certainly have preferred consumer health brands you always buy because they work for you and they’re what you’re used to. We also report Core organic revenue growth, which is reported revenue growth, excluding the impacts of COVID-19 testing revenue, and excluding the impacts of acquisitions/divestitures and the effects of currency translation. Thermo Fisher management uses these measures to forecast and evaluate the operational performance of the company as well as to compare revenues of current periods to prior periods. To give its consumer health business the agility to better innovate and grow across its categories, Johnson & Johnson was planning to create two standalone companies.

Other self care

But beyond our portfolio of iconic brands, Kenvue is built on a foundation of core values, which fuel our 22,000+ global team members every day. These investments will grow its income in the future, giving the REIT more cash flow to increase its dividend. That combination of growth and income should enable it to produce exciting total returns in the coming years. While its share price is down, the experiential property owner is growing briskly. Its revenue surged 20% year-over-year in the third quarter, while its adjusted funds from operations (FFO) were up by nearly 11% per share. VICI is benefiting from rising rental rates and an ever-expanding portfolio.

A company can cancel or lower its common stock dividend at any time, which means no dividend is completely reliable. Their leadership teams have spent decades managing capital carefully to achieve and retain a superior dividend growth track record. In case you aren’t familiar, Kenvue owns the rights to dozens of popular consumer health brands like Listerine, Aveeno, Tylenol, Motrin, Baby Powder, and even Band-Aids. Everything that was once in Johnson & Johnson’s portfolio of over-the-counter medicines, cosmetics, and self-care products is now in this company’s stable. Thermo Fisher Scientific Inc. is the world leader in serving science, with annual revenue over $40 billion.

Iconic brands, rooted in science

This is particularly relevant in the case of healthcare products, which are subject to some of the most stringent and complex regulatory frameworks in the world. This is by design, however — it is far better for healthcare technology to have to jump through multiple hoops prior to distribution than for it to put a patient’s life at risk. One thing investors will like about the stock is that Kenvue stated in its prospectus that it expects to pay a quarterly cash dividend of $0.20 per share later this year.

That’s why our iconic brands have helped generations take care of themselves and their loved ones for more than 135 years. For example, the creation of BAND-AID® Brand HYDRO SEAL™ acne blemish patches was born out of viral social media skincare trends. The development of this product demonstrates how Kenvue boldly pursues innovative ways to work, creating solutions that can genuinely improve people’s lives. We’ve created regional resources to help you get started with our brands.

Chevron, Kenvue, and VICI Properties have underperformed in recent months. However, they should generate attractive and growing dividend income in the future with the potential to produce strong total returns over the long term as they increase their earnings and their stock prices recover. They look like very attractive places to start deploying my cash stockpile.

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