Kenvue Inc. operates as a consumer health company worldwide. The company operates through three segments: Self Care, Skin Health and Beauty, and Essential Health. The Self Care segment offers cough, cold and allergy, pain care, digestive health, smoking cessation, eye care, and other products under the Tylenol, Motrin, Benadryl, Nicorette, Zarbee's, ORSLTM, Rhinocort, Calpol, and Zyrtec brands. The Skin Health and Beauty segment provides face and body care, hair, sun, and other care products under the Neutrogena, Aveeno, Dr.Ci:Labo, Le Petit Marseillais, Lubriderm, Rogaine, and OGX brand names. The Essential Health segment offers oral and baby, women's health, wound, and other care products under the Listerine, Johnson's, Band-Aid, and Stayfree, o.b., tampons, Carefree, and Desitin Diaper Rash brands. The company was incorporated in 2022 and is headquartered in Skillman, New Jersey.

Kenvue Inc. демонстрирует высокие мультипликаторы, что указывает на возможную переоцененность акций: P/E, P/S и P/B значительно превышают медианные значения по отрасли. Тем не менее, компания показывает устойчивый рост выручки и чистой прибыли, что является позитивным сигналом. Долговая нагрузка также вызывает беспокойство, так как коэффициент долга к капиталу выше медианы отрасли, что может увеличить финансовые риски. Дивидендная доходность стабильна и показывает небольшой рост, что положительно сказывается на привлекательности акций для инвесторов. В то же время, эффективность компании по показателям ROA и ROE остаётся ниже медианных значений, что указывает на отсутствие достаточной рентабельности. В целом, несмотря на устойчивые финансовые показатели, высокие мультипликаторы и ухудшающаяся рентабельность могут ограничить потенциал роста цен на акции Kenvue в ближайшем будущем.

Kenvue Inc.

Key Points
The stocks listed here are among the safest high-yielding investments you can add to your portfolio today.
Their earnings are solid and they have impressive track records when it comes to paying dividends.
Dividend income can be incredibly valuable for retirees and risk-averse investors who are mainly seeking stable, recurring cash flow for their portfolios. It can, however, be a challenge to find good quality dividend stocks that pay high yields, grow their payouts consistently, and that can be safe investments to hang on to.
The good news is I've got three excellent dividend stocks listed here that meet that criteria. Kimberly Clark (NASDAQ: KMB), T. Rowe Price Group (NASDAQ: TROW), and Realty Income (NYSE: O) are all phenomenal income-generating investments you can hang on to for the long haul. Here's a closer look at all three.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Kimberly Clark
Kimberly Clark makes household products that people use every day. Its iconic brands are highly recognizable, with Kleenex and Huggies being consumer staples throughout the world. While it might not be a growth stock, the business does offer investors some good stability. In each of the past four years, its operating income has been within a range of $2.3 billion to $2.8 billion.
Today, the stock yields 5.3%. That's higher than normal as shares of Kimberly Clark have been crashing due to investor concerns about its pending acquisition of Kenvue, which, if it goes through, will add consumer health brands such as Tylenol and Listerine under Kimberly Clark's umbrella. It's a costly $48.7 billion acquisition that comes with some risk, but it can help complement Kimberly Clark's already strong portfolio of brands.
Kimberly Clark has been paying dividends for 92 years, and it's also a Dividend King, having raised its payout for 54 consecutive years. While there's a little more risk than usual with the stock, Kimberly Clark can make for a good dividend investment to hang on to, especially with a lot of bearishness priced into its low valuation -- it trades at a forward price-to-earnings multiple of just 13, which is based on analyst expectations.
T. Rowe Price Group
T. Rowe is a leading investment management firm, with an incredible $1.7 trillion in assets under management. The company prides itself on having an active approach, with its investment professionals actually going out into the field to help guide investors.
As more investors have been entering the market, there's been a growing need for T. Rowe's services. In 2025, the company's revenue totaled $7.3 billion, which is up a modest 13% over the past three years. The company also posted a profit of just over $2 billion last year, for a solid net margin of just under 28%.
The stock offers a similar yield to that of Kimberly Clark, as it too sits around 5.3%. While its growth streak may not be as impressive, the company did recently announce a 2.4% increase to its payout, marking the 40th consecutive year that it has provided its shareholders with a dividend boost.
Realty Income
A top dividend stock for many investors is Realty Income. This is a real estate investment trust (REIT) with a diverse portfolio of tenants that generate income for the business, making it a fairly stable investment to hold. It has clients across 92 industries, and that kind of diversification makes it one of the best REITs to own, as it can enable the business to perform well even if certain sectors of the economy are struggling. Its occupancy rate is also high at around 99%.
The biggest reason to invest in the stock is undoubtedly its dividend. Not only does it yield just over 5%, but what makes Realty Income a special income stock is that it pays you every month, rather than every quarter, which is typically the norm for dividends. On top of that, it also routinely increases its dividend multiple times a year. Last month, it announced the 134th increase to its monthly dividend since going public in 1994.
Realty Income is a terrific stock for its dividend and stability. Last year, its normalized funds from operations (FFO) came in at just under $3.9 billion, which was up 9% from the previous year, when it totaled $3.6 billion. FFO is a key metric for REITs, and the growth is an encouraging sign that Realty Income's dividend is likely to continue to rise for the foreseeable future.
Should you buy stock in Realty Income right now?
Before you buy stock in Realty Income, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Realty Income wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $498,522!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,276,807!*
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*Stock Advisor returns as of April 26, 2026.
David Jagielski, CPA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Kenvue, Realty Income, and T. Rowe Price Group. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Want Reliable Dividend Income? These 3 Stocks Yield 5% and Have Been Raising Their Payouts for Decades

Key Points
Procter & Gamble’s high margins and cash-flow support its growing payout.
The company is well positioned to weather an industry-wide slowdown.
Procter & Gamble’s valuation is at multiyear lows.
Procter & Gamble (NYSE: PG) just announced its 70th consecutive annual dividend raise, boosting its quarterly payout from $1.0568 per share to $1.0885 per share, or $4.354 per year -- good for a forward yield of 3% based on the share price at the time of this writing.
The dividend increase makes P&G one of the longest-tenured Dividend Kings, which are companies that have increased their payouts for at least 50 consecutive years. There are 57 Dividend Kings -- but only five of them have increased their dividends for at least 70 consecutive years.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Here's why P&G is a top dividend-paying value stock to buy now.
P&G is in a league of its own
Procter & Gamble is the largest household and personal products company in the world and the third-largest U.S. consumer staples company by market cap -- behind Walmart and Costco Wholesale, but ahead of Coca-Cola.
P&G has a portfolio of leading brands across everyday-use categories spanning:
Diapers (led by Pampers)
Paper towels (Bounty)
Toilet paper (Charmin)
Tissues (Puffs)
Feminine products (led by Always)
Grooming and hair care (Gillette, Old Spice, Pantene, and Head & Shoulders, among others)
Cleaning products (Dawn, Cascade, Febreze, etc.)
Laundry detergents (Tide, Gain, and others)
Oral and personal healthcare products (Crest, Oral-B, Vicks, etc.)
Skin and personal care (Olay, SK-II, etc.)
P&G's international brand recognition, elite supply chain and marketing, and sheer size across categories give it impeccable pricing power and negotiating leverage with retailers. These advantages allow P&G to consistently generate operating margins above 20% -- often ahead of its peers.
Despite its competitive advantages, P&G's growth slowed in recent years due to consumer spending challenges driven by higher living costs and inflationary pressures, including higher everyday expenses and now elevated oil prices. P&G is generally considered a recession-proof business because demand for its products remains consistent across economic cycles. But consumers can change their behavior when budgets are strained and may opt to buy a private-label brand like Costco's Kirkland Signature diapers, for example, instead of Pampers to stretch their dollars.
A measured dividend increase
Given the state of P&G's business and the slowdown in the broader household and personal products industry, it's unsurprising that P&G's latest dividend raise was just a 3% increase. Historically, it's far more common to see P&G raise its dividend by mid-to-high single digits. But it's not unheard of for P&G to announce a low-single-digit raise.
The most recent example was 2023, when P&G coincidentally also raised its dividend by just 3%. This made sense at the time, given that P&G was coming off years of price increases and inflationary pressures were on the rise post-pandemic.
Maintaining a 70-year streak of dividend increases means P&G has to consistently grow its earnings and avoid outsized raises during particularly good years, because the last thing P&G wants is for the dividend expense to get so large that it gobbles up all its free cash flow (FCF).
P&G's dividend expense is still at a healthy level. Its trailing-12-month earnings per share of $6.75 and $6.09 in FCF per share easily cover its dividend, even after the latest raise. And the payout ratio of 61.9% is rock solid for a consumer staples company.
P&G is a uniquely flexible conglomerate
Aside from high margins, earnings, and FCF, what makes P&G such an elite dividend stock is its ability to take what the market gives it by leaning into whatever product categories and geographic regions are doing well.
For example, in P&G's latest quarter, which was the second quarter of fiscal 2026, Latin America and Europe helped offset weak performance in North America. Hair care was P&G's best category, and skin and personal care, personal healthcare, home care, and oral care also helped pick up the slack from weak performances in grooming, fabric care, baby care, feminine care, and daily care.
P&G doesn't rely too heavily on any particular region or product category. And even within specific categories, it can retain a customer sale even during spending pullbacks. For example, a customer may pivot from Tide to a generally less expensive detergent brand like Gain to cut costs, or from Pampers to Luvs. But P&G still lands the sale because it owns both the premium-priced category option and a more budget-friendly choice.
A top stock to buy and hold
P&G is one of the most reliable dividend stocks for value investors to buy and hold. But P&G rarely trades at a discount to the S&P 500 (SNPINDEX: ^GSPC), given its quality.
Now is an incredible opportunity for investors to buy P&G on sale. The sell-off in the stock has pushed its yield to around a five-year high and the valuation down to a five-year low. P&G sports a price-to-earnings (P/E) ratio of just 21.4 and a forward P/E of 20.8 compared to 20.3 for the S&P 500.
Add it all up, and P&G checks all the boxes of a dividend stock that can anchor a passive income portfolio.
Should you buy stock in Procter & Gamble right now?
Before you buy stock in Procter & Gamble, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Procter & Gamble wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $581,304!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,215,992!*
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Daniel Foelber has positions in Estée Lauder Companies, Kenvue, Kimberly-Clark, and Procter & Gamble. The Motley Fool has positions in and recommends Colgate-Palmolive, Costco Wholesale, Kenvue, and Walmart. The Motley Fool recommends Unilever. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Meet the Dividend King That Just Raised Its Payout For the 70th Consecutive Year. Here's Why It's a No-Brainer Buy Before the End of April.

Kimberly-Clark Corporation KMB is advancing a significant organizational overhaul alongside its planned acquisition of Kenvue Inc. KVUE, aiming to create a more agile, market-focused global health and wellness entity.
The redesigned structure centers on a lean, matrix-based operating model, where regional business units hold full ownership of performance, while centralized functions support execution with specialized capabilities. This shift emphasizes faster decision-making and sharper accountability, enabling local teams to respond to consumer demand while benefiting from global scale.
Post-acquisition, Kimberly-Clark will operate across four key geographic segments: North America, Asia Pacific Focus Markets, Europe, the Middle East and Africa (EMEA), and Enterprise Markets. North America is expected to remain the largest contributor, generating roughly $18 billion in annual sales, while other regions collectively provide exposure to high-growth international markets. This segmentation reflects a deliberate effort to balance scale with regional responsiveness.
The structure also introduces streamlined leadership layers, with regional presidents driving market execution and a centralized team overseeing strategy, operations, supply chain and innovation. The model is designed to reduce duplication and improve coordination, a critical element as the company integrates Kenvue’s operations.
Image Source: Zacks Investment Research
KMB Targets Scale Gains From Integration
From a financial standpoint, the deal is expected to generate substantial synergies of approximately $2.1 billion, largely driven by cost optimization, procurement efficiencies and the elimination of overlapping corporate functions. The combined entity is projected to deliver more than $32 billion in revenues and around $7 billion in EBITDA before synergies, reinforcing its scale in the consumer health and personal care space.
The transaction values KVUE at approximately $48.7 billion, with shareholders receiving a mix of cash and stock. Upon completion, Kimberly-Clark shareholders are expected to own about 54% of the combined company, while Kenvue shareholders will hold the remaining stake. The deal is targeted to close in the second half of 2026.
While KMB shares have slipped 2.5% over the past three months, the decline is narrower than the industry’s 2.9% drop, suggesting that investors have remained relatively resilient on the Zacks Rank #3 (Hold) stock amid broader industry weakness and ongoing focus on the pending deal.
Overall, the new organizational framework underscores Kimberly-Clark’s focus on efficiency, scalability and market-driven growth, positioning the combined company to better capture opportunities across both developed and emerging markets.
Stocks to Consider
Krispy Creme, Inc. DNUT, which produces doughnuts, currently sports a Zacks Rank #1 (Strong Buy). DNUT delivered a trailing four-quarter earnings surprise of 14.6%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Krispy Creme’s current fiscal-year earnings suggests growth of 50% from the year-ago figure.
Purple Innovation, Inc. PRPL, which designs, manufactures, and sells sleep and other products, currently carries a Zacks Rank #2 (Buy) at present. PRPL delivered a trailing four-quarter earnings surprise of 22.7%, on average.
The Zacks Consensus Estimate for Purple Innovation’s current fiscal-year sales calls for growth of 6.6%, and estimates for earnings suggest a 25% increase from the year-ago figure.
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PURPLE INNOVATION, INC. (PRPL) : Free Stock Analysis Report
Kenvue Inc. (KVUE) : Free Stock Analysis Report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Kimberly-Clark's New Structure Sets Stage for Kenvue Integration

In the latest look at the underlying components of the S&P 500 ordered by largest market capitalization, Agilent Technologies, Inc. (Symbol: A) has taken over the #273 spot from Kenvue Inc (Symbol: KVUE), according to The Online Investor.
Market capitalization is an important data point for investors to keep an eye on, for various reasons. The most basic reason is that it gives a true comparison of the value attributed by the stock market to a given company's stock. Many beginning investors look at one stock trading at $10 and another trading at $20 and mistakenly think the latter company is worth twice as much — that of course is a completely meaningless comparison without knowing how many shares of each company exist. But comparing market capitalization (factoring in those share counts) creates a true "apples-to-apples" comparison of the value of two stocks. In the case of Agilent Technologies, Inc. (Symbol: A), the market cap is now $34.02 billion, versus Kenvue Inc (Symbol: KVUE) at $33.37 billion.
Below is a chart of Agilent Technologies, Inc. versus Kenvue Inc plotting their respective size rank within the S&P 500 over time (A plotted in blue; KVUE plotted in green):
Below is a three month price history chart comparing the stock performance of A vs. KVUE:
Another reason market capitalization is important is where it places a company in terms of its size tier in relation to peers — much like the way a mid-size sedan is typically compared to other mid-size sedans (and not SUV's). This can have a direct impact on which mutual funds and ETFs are willing to own the stock. For instance, a mutual fund that is focused solely on Large Cap stocks may for example only be interested in those companies sized $10 billion or larger. Another illustrative example is the S&P MidCap index which essentially takes the S&P 500 index and "tosses out" the biggest 100 companies so as to focus solely on the 400 smaller "up-and-comers" (which in the right environment can outperform their larger rivals). So a company's market cap, especially in relation to other companies, carries great importance, and for this reason we at The Online Investor find value to putting together these rankings daily.
Examine the full A market cap history vs. the full KVUE market cap history.
At the closing bell, A is off about 0.8%, while KVUE is off about 0.5% on the day Wednesday.
Also see:
Monthly Dividend Paying Stocks
NWLI shares outstanding history
Invest Help
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Agilent Technologies Moves Up In Market Cap Rank, Passing Kenvue

Key Points
Despite falling earnings, Kimberly-Clark can still support its dividend from its operations rather than relying on debt.
The company will likely close its acquisition of Kenvue later this year.
Kimberly-Clark's high-yield and valuation make it especially appealing to income-focused value investors.
The S&P 500 (SNPINDEX: ^GSPC) has become far more concentrated in tech-focused growth companies, many of which have low yields or don't pay dividends. The changing composition of the index has compressed the S&P 500 dividend yield to just 1.2%, down from around 2% a decade ago.
Investors looking for stocks to boost their passive income have come to the right place. Kimberly-Clark (NASDAQ: KMB) -- a leading consumer staples company -- has raised its dividend for 54 consecutive years. That makes Kimberly-Clark one of 60 companies that have paid and raised their dividends for at least 50 consecutive years -- known as Dividend Kings. But Kimberly-Clark's dividend track record extends far beyond that time frame, as the company has paid a dividend for 92 consecutive years -- a streak that predates the first FM radio broadcast and the invention of the microwave oven.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Here's why Kimberly-Clark is one of the best value stocks for income investors to buy in April.
Navigating a multiyear downturn
Kimberly-Clark's yield has soared to 5.3% due to a combination of consistent dividend raises and its falling stock price. The sell-off has gone from bad to worse, and Kimberly-Clark is now hovering around a 12-year low.
Sales growth and profit margins are under pressure due to rising costs and weak consumer spending. But unlike some high-yield stocks with falling earnings that must use debt to fund their payouts, Kimberly-Clark continues to generate plenty of operating cash flow to support its long-term capital spending plans, dividend, and share repurchases.
Kimberly-Clark's payout ratio is elevated, but its earnings still exceed its dividend payment. Free cash flow (FCF) is barely below the dividend expense, and that's even when factoring in a substantial decrease in FCF in recent years, amplified by a roughly $200 million increase in input costs in fiscal 2025, mainly due to tariff-related headwinds.
The good news is that Kimberly-Clark expects margins to improve, with organic growth accelerating in the second half of 2026. Management also set its goal to reach at least 40% gross margins by the end of the decade.
What's more, the stock is dirt cheap, trading at just 16 times trailing-12-month earnings and 12.9 times forward earnings.
A household products and personal care powerhouse
Kimberly-Clark is a textbook example of how great companies can go from cheap to bargain-bin territory when multiple factors magnify investor uncertainty. In Kimberly-Clark's case, the sectorwide sell-off in consumer staples, inflationary cost pressures due in part to high oil prices, weak consumer spending due to cost-of-living increases, and uncertainty around Kimberly-Clark's Kenvue acquisition (expected to close in the second half of 2026) give short-term-minded investors multiple excuses to sell the stock.
Long-term investors who believe in the staying power of Kimberly Clark's top brands -- like Huggies, Kleenex, and Scott -- as well as the brands it will get from its acquisition of Kenvue -- like Neutrogena, Aveeno, Listerine, Band-Aid, and Tylenol -- are getting a phenomenal opportunity to scoop up shares of Kimberly-Clark on sale.
Should you buy stock in Kimberly-Clark right now?
Before you buy stock in Kimberly-Clark, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Kimberly-Clark wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $556,335!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,160,572!*
Now, it’s worth noting Stock Advisor’s total average return is 975% — a market-crushing outperformance compared to 193% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of April 15, 2026.
Daniel Foelber has positions in Kenvue and Kimberly Clark. The Motley Fool has positions in and recommends Kenvue. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This Value Stock Yields 5.3% and Has Paid a Dividend for 92 Consecutive Years. Here's Why It's a Buy in April.

Key Points
Johnson & Johnson is one of the largest pharmaceutical stocks by market cap.
Pfizer's dividend offers a hefty yield.
Revenue is growing for J&J, while Pfizer is leaning on acquisitions to help spur growth.
As large tech companies struggled this year, investors have had a chance to reevaluate their portfolios and identify where they may be underexposed to certain sectors.
One of those sectors may be healthcare, which is easy to understand. Because artificial intelligence (AI) has commanded the spotlight for the last several years and policy uncertainty swirls around that industry, it was easy for pharmaceutical stocks to slip under the radar.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
That's why we'll look at two stocks that have climbed this year while the S&P 500 has slipped, to see if there's more momentum ahead. Those two are Johnson & Johnson (NYSE: JNJ) and Pfizer (NYSE: PFE).
Leaner and more efficient
Before 2023, Johnson & Johnson was a large conglomerate that dabbled in everything from consumer goods to medical devices to pharmaceuticals. Sometimes that scale creates efficiencies that work together, turning a company into a formidable powerhouse. Yet sometimes it makes operations overly complex, slows innovation, and hamstrings the ability to establish priorities.
For Johnson & Johnson, it was a case of the former rather than the latter. So in 2023, it spun off its slow-growing consumer health division into a new business, Kenvue, through an initial public offering.
The separation, at least for Johnson & Johnson, appears to be working. In 2024, J&J recorded $88.8 billion in revenue, topping that in 2025 with $94.2 billion. For 2026, the company expects sales to range from $99.5 billion to $100.5 billion.
A budding pipeline and growth through acquisitions
As sales of its COVID-19 vaccine have declined, so too did Pfizer's total revenue. Sales nosedived from around $100 billion in 2022 to $59.5 billion in 2023. Ever since, Pfizer has been figuring out what's next.
The answer is a growing pipeline of drugs in development across several focus areas.
In particular, Pfizer has worked on strengthening its oncology segment through the acquisition of Seagen. According to Fortune Business Insights, the global oncology drug market could grow from roughly $286 billion in 2026 to more than $679 billion by 2034.
The company also acquired Metsera in November 2025, giving it a stronger foothold in the anti-obesity market.
Revenue isn't anywhere near where it was before vaccine sales declined, but it has been steady. For 2026, Pfizer forecasts revenue will be in a range between $59.5 billion and $62.5 billion. At the high end, that would be right around its totals for 2024 ($63.6 billion) and 2025 ($62.6 billion).
Who wins the healthcare stock battle?
With all the investing concerns swirling around, ranging from stubborn inflation to an AI bubble to the war in Iran, both companies offer similar downside protection with their dividend payouts.
Pfizer has a significant dividend payout, yielding over 6%. With its forward price-to-earnings (P/E) ratio of 9.6, it may look undervalued. Johnson & Johnson's dividend yield of 2.1% is lower than Pfizer's, and its forward P/E of 21.1 is higher.
Diving a little bit deeper, those lower expectations for future earnings for Pfizer may actually be more of a warning sign than a signal for a value play. Revenue isn't expected to grow in 2026, and the company needs its pipeline to do some heavy lifting over the next few years.
That brings us to the income Pfizer offers. The company does have a history of rewarding shareholders through its consistent dividend payout. However, flat revenue and upcoming patent cliffs raise concerns about the sustainability of the current dividend.
In comparison, Johnson & Johnson is being priced for higher growth. Though it will have to meet those higher expectations, investors apparently believe in its ability to generate higher future earnings. Its dividend yield may be lower than Pfizer's, but there's less of a concern about sustainability -- Johnson & Johnson has increased its dividend payout for more than 60 consecutive years.
I'd give the edge to J&J in this comparison. With its broad portfolio, steady cash flow, increasing revenue, and reliable dividend payouts, Johnson & Johnson is not only a company to consider for today's market but also one that could benefit its shareholders over the next decade.
Should you buy stock in Johnson & Johnson right now?
Before you buy stock in Johnson & Johnson, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Johnson & Johnson wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $555,526!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,156,403!*
Now, it’s worth noting Stock Advisor’s total average return is 968% — a market-crushing outperformance compared to 191% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of April 12, 2026.
Jack Delaney has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Kenvue and Pfizer. The Motley Fool recommends Johnson & Johnson. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Better Buy Right Now: Johnson & Johnson Vs. Pfizer

Key Points
Consumer staples lagged in 2025 and into this year, creating rare entry points for long-term income investors.
Dividend durability remains strong in these four tickers despite short-term earnings pressure across major brands.
There are several consumer stocks screaming "buy" right now. Consumer confidence has fallen to near-recessionary levels. The University of Michigan sentiment index hit 56.4 earlier this year. This is territory that usually triggers a rotation into defensive businesses.
At the same time, the Consumer Staples Select Sector SPDR Fund was effectively flat in 2025 as investors poured money into AI and growth stocks, leaving some of the most durable income businesses on earth trading near multiyear lows.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
To me, these consumer staples are a shopping list of names to buy. Here are four names I want to buy right now.
1. General Mills: 127 years of dividends, priced like a disaster
General Mills (NYSE: GIS) is at a 15-year price low. The stock has fallen more than 50% over the past three years and is down roughly 21% year to date in 2026. The company is behind Cheerios, Blue Buffalo, Pillsbury, and Häagen-Dazs and is now yielding 6.7%. This is one of the highest yields in the S&P 500. General Mills has paid an uninterrupted dividend for 127 consecutive years, through two world wars, the Great Depression, the dot-com bust, and the financial crisis.
The near-term picture is genuinely messy. North American retail organic sales were down 3%, and adjusted operating profit fell 32% in constant currency in the most recent quarter. That's real. But the Blue Buffalo pet food segment is growing double digits in select categories, the international segment is positive, and free cash flow is still supporting the dividend. This stock is going through a reset; it's a solid buy for decades of passive income.
2. Hormel Foods: A Dividend King at a 50% discount to its peak
Hormel Foods (NYSE: HRL) has raised its dividend for 59 consecutive years -- making it a Dividend King -- and today the stock yields above 5%. To join the Dividend Kings, a company must achieve at least 50 straight years of increasing its dividend payout. The share price has fallen roughly 50% from its April 2022 peak and is down about 23% in the last 52 weeks alone. What happened? A chicken recall, a plant fire, a shift to a product-based sales model that didn't land cleanly, and input cost pressures.
What's staying intact: Spam, Skippy, Applegate, Planters, and Black Label. These are Hormel brands that rank No. 1 or No. 2 in their categories. The company has a 1.43x leverage ratio and an A-/A1 investment-grade credit rating. Hormel also holds a genuinely interesting dual position: When consumers trade down during a slowdown, its private-label manufacturing business picks up the slack where branded volumes fall. That's a real hedge that most packaged food companies don't have.
3. Kenvue: The J&J Spinoff Nobody Is Talking About
Kenvue (NYSE: KVUE) spun off from Johnson & Johnson in 2023. It owns Tylenol, Neutrogena, Listerine, Aveeno, Band-Aid, and Nicorette. It's trading near $17.50 with a dividend yield approaching 4.8%. The stock is down roughly 30% from its 52-week high. This is a company with one of the most defensible product portfolios in consumer health, which the market simply hasn't repriced upward since it became independent.
Revenue grew 3.2% quarter over quarter in the most recent period, and operating margins sit at 17.8%. There are 20 Wall Street analysts covering Kenvue with a median price target of $19.50, roughly 11% above current prices, and not a single sell rating among them. This company owns brands that people literally buy when they're sick; that's a combination of yield and analyst support that is worth attention.
4. Church & Dwight: The Quiet Compounder Nobody Talks About
Church & Dwight (NYSE: CHD) doesn't have the brand recognition of the others on this list, but it should. It's the world's largest producer of baking soda. More importantly, its Arm & Hammer, OxiClean, Vitafusion, Batiste, and TheraBreath brands account for roughly 70% of its revenues. The company just added Touchland's hand sanitizer business to its portfolio, and its online channel now accounts for 23% of global sales -- the highest e-commerce penetration of any company on this list.
The stock recently was trading around $93, with a narrative fair value of approximately $103, and 28 analysts maintaining a median price target of $103, for a 10:1 ratio of buys to sells. Church & Dwight is guiding for 3% to 4% organic sales growth in 2026 at an EPS of $3.72. It's not flashy, but it's a solid buy for decades of gains.
The realistic thing to consider about all four of these is that none of them will double in a year. But that's not the point. The point is that a decade from now, investors who bought these names while they were down (and while everyone else was chasing AI infrastructure plays) will be sitting on a stack of dividend checks that have grown every year, compounded on a cost basis that looks very smart in hindsight.
Should you buy stock in General Mills right now?
Before you buy stock in General Mills, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and General Mills wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $550,348!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,127,467!*
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Micah Zimmerman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Kenvue. The Motley Fool recommends Johnson & Johnson. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

4 Stocks That Can Fund Decades of Passive Income -- Buy Them While They're Down

Newell Brands, Inc. NWL highlighted that 2025 proved more challenging than anticipated. The company expected a positive inflection in the core sales in the back half of 2025. However, tariffs disrupted this outlook, forcing multiple pricing actions that significantly impacted consumer behavior and retail dynamics. Categories initially projected to remain flat instead fell by 2–3 points, while some major retailers shifted from direct imports to domestic fulfillment. Competitive pricing responses were delayed, and certain international markets faced secondary tariff effects.
Newell remains cautious, as the company expects core sales to be in the range of down 2% to flat for 2026. The company expects a weak first quarter, projecting core sales to decline 7% to 5%. However, performance is expected to improve from the second quarter of 2026 as innovation and distribution gains begin to take effect.
The company began its turnaround strategy in the summer of 2023, which includes hiring brand management teams and overhauling its innovation pipeline. These efforts are now culminating in a comprehensive wave of innovation launching across all business units this year. Notably, 25 Tier 1 and Tier 2 innovations are set to launch the highest number recorded. Every business unit is contributing to this rollout, marking a significant milestone in the company’s innovation strategy.
Specific brands are already gaining momentum, with Graco becoming the #1 selling baby item in the United States, driving a 350 basis point market share gain for the Baby business. Yankee Candle’s relaunch also delivered 6% U.S. core sales growth in the fourth quarter, highlighting the impact of strong innovation and marketing.
While the significant headwinds persist, including a $150 million total gross P&L impact from tariffs, the company announced a global productivity plan expected to generate about $75 million of year-over-year savings. Given weak near-term core sales guidance and tariff pressures, caution remains warranted, though innovation momentum and productivity savings could support a gradual recovery.
The Zacks Rundown for NWL
Shares of this Zacks Rank #3 (Hold) company have lost 4.6% in the past three months compared with the industry’s decline of 0.5%.
Image Source: Zacks Investment Research
From a valuation standpoint, NWL trades at a forward price-to-earnings ratio of 6.59X, lower than the industry’s average of 17.62X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for NWL’s current fiscal year earnings implies a year-over-year decline of 1.8%, and the same for next fiscal year earnings estimate implies year-over-year growth of 11.1%.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks have been discussed below:
Krispy Kreme, Inc. DNUT produces doughnuts in the United States, the United Kingdom, Ireland, Australia, New Zealand, Mexico, Canada, Japan, and internationally. At present, DNUT sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for DNUT’s current fiscal-year sales implies a decline of 6.8%, and the same for earnings implies growth of 50% from the year-ago reported figures. DNUT delivered a trailing four-quarter earnings surprise of 14.6%, on average.
ARKO Corp. ARKO operates a chain of convenience stores in the United States. ARKO currently carries a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for ARKO's current fiscal-year sales implies a decline of 4.9%, while the same for current fiscal-year earnings implies growth of 73.3% from the year-ago reported figures. ARKO delivered a trailing four-quarter earnings surprise of 36.5%, on average.
Kenvue Inc. KVUE operates as a consumer health company in the United States, the rest of North America, Europe, the Middle East, Africa, the Asia-Pacific and Latin America. KVUE currently carries a Zacks Rank #2.
The Zacks Consensus Estimate for KVUE's current fiscal-year sales and earnings implies growth of 2.9% and 1.9%, respectively, from the year-ago actuals. KVUE delivered a trailing four-quarter negative earnings surprise of 9.8%, on average.
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With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Newell Brands Faces Soft Core Sales: Time to Stay Cautious?

Key Points
Johnson & Johnson has an incredible dividend-increase streak spanning more than 60 years.
The company's business is diversified beyond drugs, providing more avenues for growth and increased business stability.
If you are a retiree looking to supplement your Social Security checks with income you derive from dividend stocks, you'll want to get to know Johnson & Johnson (NYSE: JNJ). It has a dividend record that no other healthcare company can match, suggesting that it could set you up for a lifetime of reliable income. Here's what you need to know.
Johnson & Johnson's dividend record
J&J is a Dividend King. There are only four healthcare companies that make that elite grouping, which requires at least 50 consecutive annual dividend increases to join. And of the four, one is AbbVie (NYSE: ABBV), a spin-off that basically "shares" its streak with its former parent Abbot (NYSE: ABT). J&J's streak is the longest at 63 years, which is nine years longer than the 54 years of the other four healthcare Dividend Kings.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
You can't build a record like that by accident. J&J has a strong business plan that is executed well in both good and bad markets. That said, until recently, the business included a consumer products group. That operation was spun off as Kenvue (NYSE: KVUE), which has since agreed to be acquired by Kimberly Clark (NASDAQ: KMB). At this point, J&J is a pure-play healthcare business.
Johnson & Johnson is still diversified
While J&J's dividend streak sets it apart from other healthcare companies, including pharmaceutical makers, it remains diversified. It is not only one of the world's largest drug makers but also one of the largest medical device makers. Having a medical device business is a huge benefit for long-term investors, as more reliable cash flows from this division help balance out the patent-expiration risks inherent to the drug industry.
That said, the company isn't done streamlining its operations, with plans to spin off its orthopedics business in 2027. The separation will focus J&J's medical device business on the cardiovascular, surgery, and vision sectors. Still, its drug business (nearly two-thirds of revenues) will continue to be the driving force.
It is also important to note that the company's credit rating is AAA. That's the highest score awarded, which means the dividend is on very solid financial ground.
Not the largest yield, but still attractive
If there is one problem with J&J as a dividend stock, it is that the yield is roughly 2.2%. While that's twice the S&P 500 index's (SNPINDEX: ^GSPC) 1.1% yield, it is still below the 4% that many dividend investors target. However, if you are looking for a reliable dividend from a drug company, this diversified healthcare giant stands above all of your other options in very important ways.
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Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $536,003!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,116,248!*
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*Stock Advisor returns as of April 9, 2026.
Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends AbbVie, Abbott Laboratories, and Kenvue. The Motley Fool recommends Johnson & Johnson. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Could Buying This Dividend Pharma Stock Today Set You Up for Life?

In this episode of Motley Fool Money, Motley Fool contributors Tyler Crowe, Matt Frankel, and Lou Whiteman discuss:
Sysco’s $26 billion deal for Restaurant Depot.
McCormick’s $44 billion deal for Unilever’s food division.
The track record of major consumer brand mergers.
Eli Lilly acquiring Centessa Pharmaceuticals.
Listener question: Thoughts on Whirlpool?
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A full transcript is below.
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*Stock Advisor returns as of April 8, 2026.
This podcast was recorded on March 31, 2026.
Tyler Crowe: It is merger mania this week. Welcome to Motley Fool Money. I'm Tyler Crowe, and today I'm joined by longtime Fool contributors, Matt Frankel and Lou Whiteman, with three of us being part of the Hidden Gems team here at Motley Fool. As we said, there has been a lot of movement in the merger and acquisition field in the past couple of days, and we're going to try to break down as many of those deals as we can. Also, we're going to get to some listener questions. But to start, let's go with a lot of the deals that's going on in the food industry because we had two doozies. There must have been like, a lot of lawyers and investment bankers putting in extra hours this past weekend because first, we got news on Monday that Sysco, the food distributor, not the networking hardware company. Was acquiring private retailer Restaurant Depot for $26 billion. We'll get into the details in a second here. But I think that was going to be the headline deal we were going to talk about. Then this morning, we had even bigger deal where McCormick basically said, "Hold my beer" because they decided to merge with Unilever's food division in a $44 billion deal. What makes it kind of striking is that McCormick itself is a $14 billion company, and Sysco as doing a $26 billion deal was a $30 billion company. These are massive transformative changes in pretty sleepy consumer brand food distribution businesses. Now, personally, as I looked at the initial deals, I was a little dubious. But if forced to choose, I would probably say the Sysco Deal looks a little bit better. But I wanted to turn to you guys and see what you guys thought of both of these. I'm going to start with you, Matt. Are either of these deals making Sysco or McCormick more attractive?
Matt Frankel: I'd agree that the Sysco Deal is the more interesting of the two to me. If you're not familiar, so Sysco is the largest food service distributor in the United States. I had a short career in the restaurant industry many years ago, and I worked at a total of four restaurants across two states, and Sysco is the primary food supplier for all of them, and that's among the other 700,000 restaurants it serves worldwide. It is a massive distribution network. It gives it a major efficiency advantage over its competitors. On the other hand, Restaurant Depot, it's a network of in person wholesale restaurant supply warehouses. Think of it as like a Costco or a Sam's club, but specifically for restaurants. It's carved out a very nice niche among restaurant owners who value flexibility and pricing, over the convenience of the national distributor Sysco.
Lou Whiteman: Now, as Matt says, Restaurant Depot is a much different business, arguably a better business, better margins, decent cash flow. It better be because Sysco's paying a price that's higher than Sysco's multiple. They are hoping to see their business improve because of Restaurant Depot. Real question for me is, can they get this done? Last time Sysco tried something like this with US Foods, anti trust got in the way. It's a decade later, and as I said, they are different businesses, but we'll see if it plays out. Tyler, I do have to say, though. You said interesting. To me, back when I was in deal making world, there was nothing more interesting than a reverse Morris Trust. McCormick gets it just for interest, just for that because they are doing this. They're using this cool thing where they are merging with part of Unilever, and Unilever gets to spin it off tax free. I'm real curious about this because it used to be deals like this made sense. Self space mattered. Jamming more things into a truck that's heading to the store. That gives you scale. That gives you synergies. That was supposed to matter. Recent history, including Kraft Heinz, and some other deals we can get to, it's less settled science now whether that works. Maybe this is an opportunity to find out how much of what went wrong in other deals was the management execution compared to just the strategy. The strategy could make sense. McCormick and paper, I think, is better managed, so I am at least curious to see how this plays out.
Tyler Crowe: To lose point, thinking about, like, jamming stuff into trucks, it certainly there is some sort of logic to what's going on here, but I feel like M&A activity specifically in consumer brands has been like that joke from the TV show Arrested Development. It became like an Internet memo. It's like, "Well, did it work out for them?" Then they go, "No, they delude themselves into thinking, will work, destroys value." But it could work for us. Every single time, I've been running through, like, the mental rolodex of consumer goods deals over the past decade, where you can say it was definitively a win for its investors. We mentioned Kraft Heinz. That was a blunder. The Anheuser-Busch InBev buying SAB Miller to unite the Beer World. That was not so great. Keuring Dr. Pepper Merger hasn't turned out too well, either. I mean, the jury's still out on this recent one with Kimberly Clark and Kenvue but I can't think of a major consumer brands deal where we're like, yes, really good stuff. Now, consumer brands is historically a defensive sector. The goal for some investors maybe just collect a dividend and call it a day. It's fine. That's what a lot of investors want. But aside from this track record of value destruction at these major brands has to be a red flag going into these deals, don't you think?
Lou Whiteman: My theory here is it's not the deals. It's the companies. The value of brands have been diminished over the course of the last 20 years or so. I blame the Internet, better flow of information, but who knows? But consumer goods to me today is a barbell. Most consumers will pay up for certain specific items, whether it's on holding shoes at any given moment or one just splurge. But otherwise, consumers are happy to buy generic. That's a nightmare for these mid tier brands, and that's most of what we're talking about with Kimberly Clark, Ken view, Kraft and Heinz. If that's the case, this is a bad move for McCormick. Honestly, I believe enough that I personally try not to invest in brands in the middle. The bottom line is, I don't think people still find value in buying, say, Tylenol versus Kroger brand, Tylenol. That's a problem for anyone selling these why distribution, but a little bit extra because it's a brand name products.
Matt Frankel: There have been a few decent examples of deals like this that have worked. Performance Food Group, getting back to the Sysco situation is one that looks really interesting. Ticker symbol is PFGC and 2019-2023, it acquired three of its major competitors, including Cheney Brothers, which is a big Sysco competitor. A major reason was to add new consumer segments, which is one of the reasons Sysco's acquiring restaurant warehouse. The stock is up 160% since the start of 2019, so I'd call that a pretty solid example and a pretty close parallel, but I completely see your point, there is a lot that can go wrong with these types of acquisitions, especially when a company like Sysco is taking on $21 billion of new debt to make it happen.
Tyler Crowe: Just for keeping score, too, the deal between Unilever and McCormick is also going to be taking on a rather considerable portion of debt, as well. Whatever happens with these, the question for the next couple of years is, how quickly can we get these debt levels back down to pay off and make these things worth their while? We will be watching that. Then after the break, we're going to look at another M&A deal, but completely unrelated industry.
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Tyler Crowe: We're going to shift gears in the industries we're talking about. We're going to stick with M&A. Yesterday, Eli Lilly announced it was acquiring Centessa Pharmaceuticals. As the case with most biotech deals, it is contingent on Centessa a meeting some milestones. But assuming a Centessa hits them, the deal is worth approximately $7.8 billion. Now, I'm going to leave it to you, Matt, to get into the details of what it does. But Centessa is a clinical stage development company that's looking to treat narcolepsy. But why is Eli Lilly willing to fork over $7 billion for a company that doesn't really even have a commercial treatment yet?
Matt Frankel: Yeah, that's a really good question. As you mentioned, they're a clinical stage pharmaceutical. They develop treatments for rare diseases. It's not just narcolepsy. They have some other things in the pipeline, but that's their most promising candidate. They have a product that's in later stage trials. It just passed Phase 2 trial that was very promising. The main product, it looks like it's going to become the first to market treatment and the most effective for several forms of narcolepsy, and this is estimated to be a $5 billion market. It has several other treatments, like I mentioned in earlier trials, but that drug is why Lily's buying it. The idea is that Lily's capabilities can help it accelerate its time to market. If it's successful in obtaining FDA approval, which those milestones you mentioned, in order to get that full 7.8 billion, it would have to get FDA approval for all these forms from narcolepsy. If that happens, the treatment could be worth several times what Lily's paying for it. It's a big if, but that's the goal.
Lou Whiteman: That's why Lily's paying up for a company that doesn't have a commercial product yet. This is just a big part of how R&D works in the industry. I mean, look, I've seen estimates it's almost $2 billion that Big Pharma spends to get just one drug into production through clearance. If you can do closer to a sure thing for 7 or 8 billion, suddenly, it doesn't look too bad. In Lily's case, too, this is a proactive move to make sure that this does not become a one hit wonder or one product company. Right now, about 60% of Lily's revenue comes from GOP ones. If anything, given all of the trials they have for different treatments, trying to get other GLP treatments on label, that's likely to only go up from here. The nature of Pharma is all good things come to an end. You're constantly racing to stay ahead of a patent expiration cliff, investing in a prominent therapy outside of GOP ones. That makes a lot of sense, assuming their scientists think that there is a there here, and I'm going to leave it to their scientists and not me to say whether or not what they're buying really makes sense. Apparently, they think so.
Tyler Crowe: To that point, too, I'm not going to claim to be somebody who can read clinical trial data very well and say whether it's good or bad and the direction they're going. But as somebody who has invested in the space from time to time, there are some hard numbers that investors should think about when looking at clinical stage, pharmaceutical companies, and it's something around, like 20-30% of drug candidates that start a Phase 2 clinical trial. End up actually getting all the way through trials and FDA approval. You want to think of it as almost like companies with lots of shots on goal in their development pipeline, because, there's no far growing conclusion that any of these in particular ones are going to make it through. As we mentioned, there are some contingencies built into the deal that says, "Hey, you have to meet these milestones for us to actually pay out the number that we're seeing." I want to shift gears a little bit, talking about healthcare in general, I want to get you guys' thoughts, but I don't want to drift too far here. One thing that's hard to shake when looking at the industry right now is FDA approvals. The rules and processes for getting approvals look pretty different in this current administration than prior ones. I think we mentioned it on a prior show earlier this year, Moderna's CEO Stephane Bancel, said that it is scaling back clinical trials for its MRNA vaccines because it would be as his quote said, difficult to see return on investment. That was specifically tied to MRNA vaccines, and we know that the current administration's position on vaccines is very different than what we've had in the past. I know that both of you have some ties to the healthcare industry, through your families and stuff like that. But as you look at this space as investors, have the recent changes in FDA approvals maybe changed the way you think about investing in clinical stage companies, at least in the time being?
Matt Frankel: I generally avoid the pharmaceutical industry for the reasons that you mentioned, because only 20-30% of the drugs that pass phase two trials actually come to market. For me, it hasn't really changed the way I invest, personally, but it's definitely something that healthcare investors should take into account.
Lou Whiteman: I am due to family. For most of my career, I've been restricted by conflict of interest. I can't that's an easy answer for me. But I will say this. These are long term projects. It takes upwards of a decade to get some drugs through clearance. I don't think these companies have to worry about any one regime because usually, things have changed over the course of it. I think it's something for investors to be aware of, but I wouldn't lean into political wins, changes coming from the agency with cycle to cycle. I think that if the science is good, there's a ways to get it done. You focus on trying to figure out the science.
Tyler Crowe: After the break, we're going to dip into the mailbag. Quick reminder, we want to make you part of the conversation. If you have a stock or investing question for Matt, Lou, myself, or anyone else on the Motley Fool Money Show, you can now email us at podcast@fool.com. We'd love to have your mailbag segments whenever possible, so send in your questions and just remember to keep them foolish. That email again is podcast@fool.com. I'm going to read this listener question that we got a little while ago. It comes from VJ Cont. I apologize if I mispronounce any names. It's a guarantee it's going to happen whenever you do these mailbag sections. His question was, I want to get your perspective on the long term investment thesis of Whirlpool. The ticker is WHR. I'm drawn to the generous dividend, but also question the sustainability of the dividend, given its high debt load on the balance sheet. I also want in your opinion on the long term narrative of the company, given the international competitive environment in the large appliance sector. Thanks for the comments. Cheers. Matt, I want to start with you. Whirlpool. What is your take?
Matt Frankel: I mean, my short answer is the market doesn't seem too convinced on the long term thesis for Whirlpool, either. The stock is down more than 50% from its high. It's still a profitable business. It has a 6.9% dividend yield as we're recording this that's well covered by its earnings, and it trades for about 9.3 times trailing 12 month earnings and less than nine times forward earnings. It has about $6.5 billion of debt. I don't view that as an unreasonable debt load, especially because it's steadily declined for the past three years. Now, management has made some questionable decisions recently. I will say that. They did a dilutive capital raise about a month ago. It caused the stock to drop 15%. That was a good portion of that decline I mentioned. It's a solid business, a nice dividend stock to own, but it's not one to buy and forget.
Lou Whiteman: I think I'm with the market on this one. The bull case is a recovering housing market plus continued tariffs. Boost sales. I think we're quite early in the recovery of housing, and I'm not sure what to think on tariffs. Dividend does look okay for now, but remember, they already cut it in half last year, so they are willing to make the hard decisions. They did just raise capital in February. That makes things look better, but that speaks to a business that is not firing all cylinders. There's probably a trade to be done here, guys, because Matt's right, the business isn't going away, and there is probably, a bottom to bounce off of, especially with activism involved. But for me, I don't see this as an attractive long term investment. Too many the deck is stacked against them.
Tyler Crowe: As a company that we can say is sensitive to the economic headwinds or tailwinds of the housing industry, whether that be new construction or refurbishment or anything like that, it's going to take a while for something like Whirlpool to really turn around. All you have to do is look at mortgage originations or refinancing originations to see that the housing market is in a very slow space. As long as that is crawling along, it's hard to see Whirlpool making a really strong recovery. I think we're all in consensus here. There's probably a long term narrative somewhere, but with the headwinds that the company's facing, maybe just sit on the sidelines for a while. As always, people on the program may have interest in the stocks they talk about and the Motley Fool may have formal recommendations for or against, so don't buy or sell stocks based solely on what you hear. All personal finance content follows Motley Fool editorial standards and is not approved by advertisers. Advertisements are sponsored content and provided for informational purposes only. To see our full advertising disclosure, please check out our shows. Thanks for producer Dan Boyd and the rest of the Motley Fool team. For Matt Lou and myself, thanks for listening, and we'll chat again soon.
Matt Frankel, CFP has no position in any of the stocks mentioned. Tyler Crowe has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Centessa Pharmaceuticals Plc, Costco Wholesale, Kenvue, McCormick, Moderna, Sysco, and Walmart. The Motley Fool recommends Kraft Heinz, Unilever, and Whirlpool. The Motley Fool has a disclosure policy.
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