By webmaster in Forex Trading
That again highlights why the business might make more sense for risk-averse dividend investors than for those seeking attractive growth opportunities. Founded in 1993, The Motley Fool is a financial services company dedicated to making the world smarter, happier, and richer. The Motley Fool reaches millions of people every month through our premium investing solutions, free guidance and market analysis on Fool.com, top-rated podcasts, and non-profit The Motley Fool Foundation. Skin health and beauty products accounted for $4.4 billion in net sales last year, or 29% of overall revenue.
Until then, Kenvue will qualify as a “controlled company” under the corporate governance rules of the NYSE, the filing said. That will allow Kenvue to avoid certain listing standards, including a requirement that the company’s board be composed of a majority of independent directors. We are committed to continuously improving our sustainability efforts through our brands, packaging and operations, delivering on the expectations of today’s consumers.
The executives will lead a team of more than 22,000 employees across 165 countries and 25 in-house manufacturing sites, according to the preliminary prospectus. Kenvue noted that its global footprint is “well balanced geographically,” with roughly half of 2022 net sales coming from outside North America. Shares will begin trading Thursday on New York Stock Exchange under the ticker “KVUE.” Kenvue total number of employees in 2022 was 22,200, a 11% increase from 2021.
Assuming that is the case and the company pays every quarter, that would result in a yield of around 3.1% based on a share price of $26, which would be higher than the S&P 500 average of 1.7%. 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. That’s not necessarily a negative, as it will mean plenty of incentive for the company to be run prudently because Johnson & Johnson will still have a lot of skin in the game.
The spinoff, the biggest IPO since EV maker Rivian went public in November 2021, alone may not completely turn around the moribund IPO market, which plummeted in 2022. With empathy, we unearth extraordinary breakthroughs in everyday care, and with courage and conviction, we bring them to life. We boldly pursue more innovative ways of working, pioneer solutions that improve lives, and create products that create categories — then improve them again and again. From gently cleaning tiny fingers during a baby’s first bath to protecting the vitality of your skin to soothing aches and pains — our products deliver safe, effective, everyday care at every stage of life. Kenvue has already been involved in seven talc lawsuits (at least) since the start of last month, according to Reuters. The danger is that even a handful of claims could potentially yield devastating results for Kenvue, as its assets and revenue stream won’t nearly be the size of Johnson & Johnson’s.
From best practices to best-in-class products, we learn, test, partner and optimize. Then we move fast to bring real solutions into communities, homes and hands. With leading science and knowledge, we educate and empower — so that when people need us, they can rely on our brands.
Johnson & Johnson (JNJ -0.65%) officially spun off its consumer health business this month, creating the largest U.S. initial public offering since 2021. Kenvue (KVUE 1.34%) began trading as a stand-alone business and gives healthcare investors a new stock to potentially add to their portfolios. It now controls the production and sale of top products like Band-Aid, Tylenol, and Neutrogena, and it will offer a dividend, just as its parent company does. Kenvue has some strong brands in its portfolio, decent financials, and even plans to pay a dividend.
In May 2023, Kenvue made our debut as a public company on the New York Stock Exchange, trading under the KVUE ticker symbol. Today, Kenvue is the world’s largest pure-play consumer health company by revenue, with annual sales of ~$15 billion in 2022. The one risk that concerns me the most is that investors still face potential liability related to talc-based products the company sold. Johnson & Johnson’s consumer health business Kenvue priced its IPO at $22 per share Wednesday, toward the high end of its stated range, in an upsized deal that would bring in about $3.8 billion. Formerly the Consumer Healthcare division of Johnson & Johnson,[2] Kenvue is the proprietor of well-known brands such as Aveeno,[3] Band-Aid,[4] Benadryl, Zyrtec,[5] Johnson’s,[6] Listerine,[7] Mylanta, Neutrogena,[3] Tylenol,[7] and Visine. 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.
Among those products are shampoos, conditioners, hair loss treatments and skin care. Meanwhile, Kenvue is chock full of household names familiar to investors and the larger public, such as Tylenol, Band-Aid, Listerine, Aveeno, Neutrogena, and J&J’s namesake baby powder and shampoo. The company expected to price 151 million shares between $20 and $23 per share, according to a preliminary prospectus it filed with the Securities and Exchange Commission last week.
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.
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’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.
Johnson & Johnson’s sheer size makes it a safe stock to buy despite the legal challenges. Kenvue, however, doesn’t enjoy that same luxury — its cash and cash equivalents as of the end of 2022 total $1.2 billion. Plus, there are many more lawsuits that could arise in the future, so that’s a big unknown to be hanging over the business right from the start. Although Kenvue is technically a separate company, Johnson & Johnson will still play a big role in its operations; the healthcare company will own a 90% stake in the business. The company’s self-care unit, which includes products for eye care, cough and cold, and vitamins, generated $6 billion in net sales for 2022, accounting for 40% of total revenue.
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Our committed collaboration fuels our relentless external competitive drive — because the stronger our bonds are, the stronger our brands are, too. Kenvue’s chief people officer, chief corporate affairs officer, chief technology and data officer, chief scientific officer and group presidents for different regions around the world are also from J&J. Overall, Kenvue said 2022 sales were “well balanced” across the company’s three business divisions. “Johnson & Johnson will continue to control the direction of our business, and the concentrated ownership of our common stock may prevent you and other shareholders from influencing significant decisions,” Kenvue said in the filing.
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. J&J faces thousands of allegations that its talc baby powder and other talc products caused cancer. If you’ve heard of Kenvue, you may already know that we’re a global consumer health company. 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. This site is governed solely by applicable U.S. laws and governmental regulations.
Our Healthy Lives Mission strives to advance the well-being of both your health and the planet’s health. We’re working to improve the sustainability of our products, packaging and operations to build lasting positive change for people, communities and the one planet we call home. Our work impacts consumers and colleagues, communities and generations, in daily rituals and in the moments that matter most. This incredible responsibility means every decision and action we take is guided by integrity and quality. Our leadership reflects our consumers and brings to Kenvue a wealth of experience and diversity of perspectives.
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