Kenvue's Dividend Yield to Reach 3.8% with $0.2075 Per Share Payment

Kenvue (NYSE:KVUE) is increasing its dividend to $0.2075, up 1.2% from last year's $0.205. The dividend yield is now 3.8%. The company's projected earnings are expected to cover future distributions, with a forecasted EPS expansion of 111.4% over the next year. However, Kenvue's dividend growth potential is shaky, with earnings per share having shrunk at 23% annually over the past three years.

Kenvue Inc. (NYSE:KVUE), a consumer health company, has announced an increase in its quarterly dividend to $0.2075 per share, up 1.2% from last year's $0.205. The new dividend represents a yield of 3.8%, reflecting the company's commitment to shareholder returns. Despite the dividend increase, Kenvue's earnings per share (EPS) have been contracting at an annual rate of 23% over the past three years, raising concerns about the sustainability of future dividend growth.

The company's projected earnings for the fiscal year 2025 are expected to cover future distributions, with a forecasted EPS expansion of 111.4% over the next year. However, analysts remain divided in their opinions on Kenvue's stock. While five analysts recommend a "Strong Buy," 10 suggest a "Hold" rating, indicating a cautious outlook [2].

Institutional investors, including Zurcher Kantonalbank, have increased their stakes in Kenvue. Zurcher Kantonalbank's holdings in Kenvue grew by 17.2% during the first quarter of 2025, bringing its total shares to 433,465 [2]. Other institutional investors, such as Cambridge Investment Research Advisors Inc. and IFP Advisors Inc., have also increased their positions in Kenvue [2].

Kenvue's stock has shown resilience in the face of market volatility, with a year-to-date (YTD) gain of 3.8% and a 52-week high of $25.17. However, the company's performance has been mixed, with the stock outperforming the broader market over the past year but underperforming in 2025. Analysts expect Kenvue to report a 2.6% year-over-year dip in adjusted EPS for the fiscal year 2025, ending in December [1].

The company's robust earnings surprise history, with it surpassing or meeting the Street's bottom-line projections in each of the past four quarters, provides some reassurance. However, the recent decrease in analyst ratings and price targets suggests that investors should approach Kenvue with caution. The mean price target of $23.89 indicates a 7.8% upside from current price levels, while the street-high target of $29 represents a 30.8% premium [1].

In conclusion, Kenvue Inc.'s dividend increase is a positive development for shareholders. However, the company's EPS contraction and mixed analyst sentiment should be carefully considered before making investment decisions. Investors should closely monitor Kenvue's earnings reports and analyst ratings to gauge the stock's potential for future growth.

References:
[1] https://www.barchart.com/story/news/33734730/kenvue-stock-outlook-is-wall-street-bullish-or-bearish
[2] https://www.marketbeat.com/instant-alerts/filing-kenvue-inc-nysekvue-shares-purchased-by-zurcher-kantonalbank-zurich-cantonalbank-2025-07-31/