SKILLMAN, N.J. - Kenvue Inc . (NYSE: NYSE:KVUE), recognized as the largest pure-play consumer health company by revenue, has announced a 2.5% hike in its quarterly dividend. The company's Board of Directors has declared a dividend of $0.205 per share on its common stock, which is scheduled to be paid out in the third quarter of 2024.
Shareholders on record by the close of business on August 14, 2024, will be eligible for the dividend, which is payable on August 28, 2024.
Kenvue's portfolio includes several iconic brands such as Aveeno®, BAND-AID® Brand, Johnson's®, Listerine®, Neutrogena®, and Tylenol®. These brands are supported by scientific research and are recommended by healthcare professionals globally.
The announcement is based on a press release statement.
In other recent news, Kenvue Inc. reported a solid performance for the first quarter, surpassing market expectations. Despite a 4.5% decline in its Skin Health and Beauty segment, the company's Self Care and Essential Health segments showed robust growth. Kenvue is also planning a significant increase in advertising spending, projected to rise by approximately 15% in 2024.
In addition, Kenvue initiated a secondary underwritten public offering of 182,329,550 shares of its common stock. Johnson & Johnson plans to exchange an equivalent number of Kenvue's common stock shares for debts, effectively divesting its entire stake in Kenvue.
On the analyst front, Citi reinstated its analysis of Kenvue, assigning a Neutral rating to the company's shares with a price target set at $21.00. Similarly, Goldman Sachs updated its outlook on Kenvue, increasing the price target to $21 from the previous $20, while maintaining a Neutral rating on the stock.
InvestingPro Insights
Kenvue Inc. (NYSE: KVUE), with its dedication to shareholder value, recently announced a dividend increase, which appears to be a well-considered move, especially when looking at the company's financial metrics. According to InvestingPro data, Kenvue boasts an impressive gross profit margin of 56.57% over the last twelve months as of Q1 2024, underscoring the company's ability to maintain profitability in its operations.
The firm's commitment to sustainable growth is further reflected in its market capitalization of $34.79 billion and a reasonable price-to-earnings (P/E) ratio of 23.2. The adjusted P/E ratio for the last twelve months as of Q1 2024 stands at 17.98, suggesting that investors may find the company's stock to be more attractively valued when considering its earnings potential. Moreover, Kenvue operates with a moderate level of debt, which indicates a balanced approach to leveraging and financial stability.
While Kenvue's stock is currently trading near its 52-week low, this could present a buying opportunity for investors, especially considering that analysts predict the company will be profitable this year, as highlighted by one of the InvestingPro Tips. Additionally, there are over 5 additional tips available on InvestingPro, offering deeper insights into Kenvue's financial outlook. For those looking to explore these insights further, use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
Overall, the dividend hike is in line with Kenvue's proven track record of profitability and its strategic financial management, which aims to enhance returns for shareholders.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.