Core Insights - Three companies, Walmart, Clorox, and Kenvue, have raised their dividends for at least 40 consecutive years, attracting investors seeking passive income and stability [1] Group 1: Walmart - Walmart's stock has increased by 42.5% over the past six months, driven by strong performance in its U.S. business, which reported 5.3% comparable sales growth and significant market share gains among households earning over $100,000 [2][5] - The company has successfully attracted higher-income consumers while maintaining everyday value for all customers, which has contributed to its stock performance [4][6] - Walmart has implemented AI and machine learning to enhance customer insights and improve its services, including Walmart+ and Walmart Marketplace [7] - Despite a lower yield of 1%, Walmart is a Dividend King with 51 consecutive years of dividend increases, having raised its dividend by 9% in February [8] Group 2: Clorox - Clorox has also raised its dividend for 40 consecutive years, currently offering a yield of 2.9%, but faces challenges in its business performance [9] - The company reported a 20% decline in sales and a 75% drop in diluted earnings per share in its first quarter of fiscal 2024, largely due to overestimating demand during the pandemic and a cyberattack [10][13] - Clorox has raised its full-year fiscal 2025 earnings guidance, indicating a potential return to growth, although its stock price has only increased by 12.8% over the last five years [11][13] - The stock may be appealing for investors looking for higher-yield options in the consumer staples sector, despite the need for improvement in its margins [14] Group 3: Kenvue - Kenvue, spun off from Johnson & Johnson, is positioned as a stable company with a focus on personal health solutions, inheriting J&J's status as a Dividend King [15][17] - The company has experienced a 10.5% decline since its inception, following an initial sell-off, but offers a yield of 3.4% and a forward P/E ratio of 21.1 [16][17] - Kenvue's recent dividend increase was only 2.5%, indicating the need for larger raises to attract passive income investors [17]
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