Tylenol-Maker Kenvue’s Stock Is Down 30% in 2025. Its Fate May Be in the FDA’s Hands.

Core Viewpoint - Kenvue is facing significant challenges, including legal issues related to its talc-based baby powder and recent accusations regarding its Tylenol product, which the company is actively contesting [1][2]. Company Overview - Kenvue is a consumer health company with a diverse portfolio of well-known brands, serving approximately one billion consumers across 165 countries, and has a market capitalization of about $28.7 billion [3]. - The stock has experienced a decline of over 22% in the past two years and 30% year-to-date, despite offering a dividend yield of 5.4%, which is more than double the sector median of 2.5% [3]. Financial Performance - Kenvue's revenue and earnings have decreased over the past year, with a consistent decline in earnings over the last two years [6]. - Despite the negative sentiment, Kenvue has shown resilience by beating earnings estimates, reporting earnings per share of $0.29 against an estimate of $0.28 in the most recent quarter [6]. Dividend Sustainability - The sustainability of Kenvue's dividend is in question due to a high payout ratio of nearly 75% and declining earnings, which limits growth potential [4].