This Consumer Staple Is Getting Cheap…

Consumer staples had an incredible run in 2024.

Many stalwarts like Colgate and Procter & Gamble hit all-time highs, only to sell-off drastically. But, even after the correction, most of these companies are only offering 2–2.5% starting dividend yields.

Meanwhile, there’s one consumer staple stock with a portfolio of recognizable brands and a starting dividend yield of 3.90%.

And, this high-yielder trades at a relatively cheap valuation.

What is this mystery stock?

Kenvue Inc. ($KVUE).

Kenvue is the spin-off of Johnson & Johnson’s consumer health division. While Johnson & Johnson focuses on developing new pharmaceutical breakthroughs, Kenvue manages blue chip over-the-counter staples like Tylenol, Neutrogena, Listerine, and Band-Aid.

These are reliable brands used by over 1.2 billion people on a daily basis.

And while Kenvue saw a run-up last year, the stock is down -14.06% since December 2nd, 2024.

At the time of writing, Kenvue is paying a 3.90% starting dividend yield. And, there’s an upcoming quarterly dividend payment in February. Additionally, Kenvue is trading at a price to earnings ratio of just 18.40 — far lower than peers like Colgate or Procter & Gamble.