Is Kenvue (KVUE) a Halal Dividend Stock Worth Adding to Your Portfolio?

 Kenvue Inc. (NYSE:KVUE) is included among the 11 Best Halal Dividend Stocks to Buy Now.

In August 2023, Johnson & Johnson separated its consumer health and hygiene products into a new publicly listed company called Kenvue Inc. (NYSE:KVUE). The new entity manages a portfolio of well-recognized brands across various product categories. Thanks to its international presence, the company holds a strategic edge over companies that primarily operate within domestic markets.

In the first quarter of 2025, Kenvue Inc. (NYSE:KVUE) reported revenue of $3.74 billion, which showed a 4% decline from the same period last year. However, the revenue beat analysts’ estimates by $57.4 million. The company updated its 2025 outlook to account for currency headwinds and increased costs from new tariffs. It expects net sales to rise 1% to 3% year-over-year, with organic growth of 2% to 4%, though foreign exchange is likely to reduce sales by about 1%. Adjusted operating income margin is projected to decline due to tariff impacts, while adjusted diluted EPS is expected to remain flat, slightly pressured by currency fluctuations.

Kenvue Inc. (NYSE:KVUE) reported an operating cash flow of $0.4 billion, and its free cash flow was $0.2 billion. Since the company was separated from Johnson & Johnson, it took on the legacy of being classified as a Dividend King. It currently pays a quarterly dividend of $0.205 per share and has a dividend 3.73%, as of July 18.

While we acknowledge the potential of KVUE as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.