Kenvue Inc. (NYSE:KVUE) has earned recognition from Wall Street analysts as one of the **12 Most Promising Dividend Stocks**. This consumer health company, known for its extensive range of over-the-counter medicines, personal care products, and wellness items, includes trusted brands like **Tylenol**, **Neutrogena**, and **Listerine** in its portfolio. Despite this accolade, Kenvue’s stock has experienced a decline of over **24%** since the beginning of 2025.
The recent controversy surrounding Kenvue intensified after former President **Donald Trump** made assertions linking **Tylenol** use during pregnancy to an increased risk of autism in children. His comments prompted the **FDA** to consider implementing warning labels and advising healthcare providers to limit the use of acetaminophen. Following Trump’s remarks, Kenvue’s stock saw a notable drop, and potential lawsuits emerged. In response, both Kenvue and medical experts have firmly rejected these claims, stating that no proven link exists between Tylenol and autism. The **FDA** later clarified its stance, confirming that acetaminophen remains the safest pain reliever for pregnant women.
Dividend Stability Amid Challenges
The controversy adds pressure to Kenvue, which is already grappling with weak performance and recent leadership changes. Despite these hurdles, the company continues to attract income-focused investors thanks to its robust dividend yield. Following its spin-off from **Johnson & Johnson**, Kenvue maintained its status as a **Dividend King**, a title that signifies its reliability in providing dividends over a significant period.
In **July**, Kenvue raised its quarterly dividend by **1.2%**, bringing it to **$0.2075** per share. As of **October 8, 2023**, the stock boasts a dividend yield of **5.16%**, making it an appealing option for those seeking income investments.
While Kenvue presents potential as a dividend stock, some analysts believe that certain **AI stocks** may offer greater promise for investors seeking higher returns with limited downside risk. Reports suggest that specific AI stocks are projected to have a **100x upside potential**, prompting investors to explore opportunities beyond traditional dividend-paying stocks.
Kenvue’s situation illustrates the complexities faced by companies in the consumer health sector, balancing investor confidence with market volatility and public perception. As it strives to navigate these challenges, Kenvue remains committed to its mission of providing trusted health and wellness products to consumers worldwide.
