Johnson & Johnson's spun off company Kenvue (NYSE:KVUE) just received investment from activist investment firm Starboard Value LP. And the investment will add more capital to Kenvue to further its growth agenda. As an activist investment firm, Starboard Value has been contributing a lot to improving companies' performance on their stake. Their stake on Kenvue affirms Kenvue's prospect in the future.

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Kenvue has a formidable lineup of well-known consumer health brands, such as Aveeno, Tylenol, Band-Aid, Zirtec, Listerine, and Neutrogena. These strong brand images can leverage the firm's growth and transformation of Kenvue.

Another catalyst that boosted Kenvue's shares after making only little movements since last year's debut is the dividend announcement. On Monday's closing market, the board of Kenvue Inc announced a dividend payment of $0.205 per share that will be distributed on the 27th of November. Adding to the news, the company's dividend was higher than its profits, and made up 89% of cash flows.

The two catalysts responded by the market wholeheartedly as Kenvue shares jumped up 5.5% on Monday. The price tops 2.7% of the company's 52-week high. Morningstar suggests Kenvue as undervalued and sees that investors may trust Kenvue's strong brands to generate growth in the future.

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This article first appeared on GuruFocus.