Kenvue dividend
Kenvue pays $0.83 per share in the first horizon. Kenvue's cash coverage is narrow: in 2024, Kenvue generated $1.335 billion of free cash flow and paid shareholders $1.787 billion, while in 2025 dividends and buybacks exceeded free cash flow by $56 million.
How much does Kenvue pay per share?
The dividend stays at $0.83 in the first horizon. The base case then raises it to $0.87 and $0.92, while the bear case cuts it to $0.50 and the bull case lifts it to $0.92 and $1.02. The base path reflects narrow first-half cash coverage; the bear path reflects debt and restructuring pressure; the bull path requires stronger cash generation.
| October 2027 | October 2028 | October 2029 | |
|---|---|---|---|
| Earnings | 2,400 (1,800 / 2,750) | 2,480 (1,850 / 2,920) | 2,560 (1,900 / 3,100) |
| Dividends per share | 0.83 (0.83 / 0.83) | 0.87 (0.50 / 0.92) | 0.92 (0.50 / 1.02) |
| Price to earnings | 18.00 (16.00 / 21.00) | 18.00 (14.00 / 23.00) | 18.00 (13.00 / 24.00) |
Is Kenvue's dividend covered by its cash?
In 2024, Kenvue generated $1.335 billion of free cash flow. It paid shareholders $1.787 billion, $452 million more than that cash generation. In 2025, free cash flow rose to $1.722 billion, but dividends and buybacks still exceeded it by $56 million. A profitable company can therefore distribute more cash than its operations generated, leaving debt or future investment to absorb the difference.
| 2025 | 2024 | 2023 | Jan 2023 | Jan 2022 | |
|---|---|---|---|---|---|
| Free cash flow | 1,722 | 1,335 | 2,699 | 2,150 | 39 |
| − Dividends paid | 1,581 | 1,552 | 766 | 0 | 0 |
| − Share buybacks | 197 | 235 | 7 | 0 | 0 |
| = Free cash flow not paid out | 1,926 | 2,150 | 39 | ||
| = Paid out more than the free cash flow | 56 | 452 |
What could change Kenvue's dividend?
During 2026–2028, investors should test whether the $200 million savings programme survives implementation costs, reinvestment and debt needs. Better cash generation would support dividends and repurchases; continued cash strain would pull the forecast toward the bear path.
What is Kenvue's dividend yield against its price?
An investor seeking an 8% annual return would need more than the current cash yield if that cash does not grow. With no cash growth, the target would require roughly $2.9 billion annually, versus about $1.6 billion implied by current cash generation. That is a hurdle, not a forecast. Execution must make earnings repeatable and turn them into durable cash.
| Today (Oct 19, 2026) | |
|---|---|
| Share price | 18.905 |
| Free cash flow yield (calculated) | 4.7% |
| Real free cash flow yield (calculated) | 4.4% |
| Dividend yield (calculated) | 4.4% |
What this means. The next-year price-to-earnings number uses analysts’ guesses about future profit, so it may be wrong.