Can Kenvue Be a Reliable Dividend Stock to Hold for the Long Haul?
Kenvue (NYSE: KVUE) began trading on the NYSE in May after healthcare giant Johnson & Johnson spun off the consumer health business (it still owns a 9.5% stake in the company). Kenvue has many popular consumer brands in its portfolio, including Tylenol, Aveeno, and Band-Aid. And with a presence in over 165 countries, the business is geographically diverse.
Although it's early, the stock is already providing investors with a dividend. The big question is whether it's safe and can be relied on for the long haul.
Earlier this year, Kenvue began paying a quarterly dividend of $0.20. And with a share price of around $18, that means its yield is already fairly high at approximately 4.2%. That's more than double the S&P 500 average of 1.7%.To collect $1,000 in dividends over the course of a full year from Kenvue at that rate, investors would need to invest approximately $23,000 (versus nearly $59,000 with the S&P 500's average yield).
Source Fool.com
