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. Skin health and beauty products accounted for $4.4 billion in net sales last year, or 29% of overall revenue. Among those products are shampoos, conditioners, hair loss treatments and skin care.

With AllergyCast®, your patients can track and record their symptoms and print their results to share with you during future visits. Smoking cessation app that puts personalized power in the hands of your patients to help smokers quit for good. Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services. But Kenvue said in the filing that “such indemnity may not be sufficient” to protect the new company against the full amount of liabilities. But Kenvue will assume only talc-related liabilities that arise outside the U.S. and Canada, according to its IPO filing from January.

This incredible responsibility means every decision and action we take is guided by integrity and quality. 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. Each of the three divisions was profitable on an adjusted operating income basis, the company said in the filing.

  1. For example, the creation of BAND-AID® Brand HYDRO SEAL™ acne blemish patches was born out of viral social media skincare trends.
  2. Then we move fast to bring real solutions into communities, homes and hands.
  3. Our committed collaboration fuels our relentless external competitive drive — because the stronger our bonds are, the stronger our brands are, too.
  4. 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.

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%. Thibaut Mongon, J&J’s executive vice president and worldwide chair of consumer health, will serve as CEO of the newly public company. And products in the essential health division, including baby products, mouthwash and dental rinses, sanitary protection and wound care, saw $4.6 billion in net sales, representing 31% of all-in revenue. 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. Our skin health & beauty brands bring together next-generation science and partnerships with skin experts to create high-performance products for healthy skin.

How a Kenvuer-led initiative supports love, equality & care for the LGBTQIA+ community

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.

That means less risk-taking and perhaps more conservatism, which caters to the preferences of dividend investors rather than to those looking for an aggressive growth stock. 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. Kenvue’s debut also marks the largest restructuring in J&J’s 135-year history. J&J announced the split in late 2021 as a bid to streamline operations and refocus on its pharmaceutical and medical device divisions. 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.

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. Our self-care brands offer new ways for consumers to take the power of their health into their own hands with over-the-counter medicines and naturally inspired solutions. 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.

J&J spinoff Kenvue prices IPO at $22, toward the top end of expected range

Use of this site constitutes your consent to application of such laws and regulations and to our Privacy Policy. 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. The one risk that concerns me the most is that investors still face potential liability related to talc-based products the company sold.

Ten of Kenvue’s brands had approximately $400 million or more in sales last year. Annual sales growth through 2025 is projected to be about 3% to 4% globally, according to the filing. Kenvue is profitable and expects modest growth over the next few years, the company said in the filing. Until then, Kenvue will qualify as a “controlled how to use a virtual card in store: how to use a virtual card a comprehensive guide 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. J&J plans to distribute the remaining shares of common stock to its shareholders later this year.

Johnson & Johnson announces Kenvue as the name for planned new consumer health company

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. Use of this site constitutes your consent to application of such laws and regulations. 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. 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.

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. J&J faces thousands of allegations that its talc baby powder and other talc products caused cancer.

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. This site is governed solely by applicable U.S. laws and governmental regulations.

That’s why our iconic brands have helped generations take care of themselves and their loved ones for more than 135 years. 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. Our essential health brands have been raising standards of personal care across baby care, wound care, oral care and sanitary protection for generations. But while that diversification will add safety, it won’t necessarily make for a good growth investment. Kenvue projects that its top line will grow at a compounded annual growth rate of between 3% and 4% through 2025. 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.