Haleon plc (HLN)

Haleon is one of the largest consumer health companies in the world. Formed by a combination of consumer health divisions of GSK, Pfizer, and Novartis, Haleon separated from GSK and went public in July 2022. The firm generates 60% of sales from global power brands including Sensodyne, Advil, Centrum, and Poligrip, that play in many geographies and are often leaders in their respective categories. It also has a number of local brands, including Emergen-C, Eno, Tums, and Caltrate, that are more tailored to regional needs and have strong local brand equity. Overall, Haleon’s brands tackle a variety of silos within consumer health including oral care, digestive health, pain relief, and nutrition.

Haleon is one of the largest consumer health companies in the world. Formed by a combination of consumer health divisions of GSK, Pfizer, and Novartis, Haleon separated from GSK and went public in July 2022. The firm generates 60% of sales from global power brands including Sensodyne, Advil, Centrum, and Poligrip, that play in many geographies and are often leaders in their respective categories. It also has a number of local brands, including Emergen-C, Eno, Tums, and Caltrate, that are more tailored to regional needs and have strong local brand equity. Overall, Haleon’s brands tackle a variety of silos within consumer health including oral care, digestive health, pain relief, and nutrition.

U.S. stocks are trading near record highs. But despite that strong performance, U.S. shares are being outshined by global emerging stocks. The leading emerging market ETF (EEM) has gained 22% year to date compared to 13% for the S&P 500. By comparison, a leading industrialized global stock market index, the ETF EAFE (EFA), is up 8%. With continued worries about the U.S. economy and rising interest rates, global stocks, and especially those that pay dividends, are an option for investors. The lagging U.S. markets represent quite a change from the recent record. Over the past five years, the S&P 500 has advanced 79% compared to a 33% gain for the EAFE and a 32% gain for the EEM. But the underperformance has given global stocks a valuation advantage, particularly in the area of dividends. Consider that the EAFE dividend yield of 3.14% is roughly 210 basis points higher than the comparable S&P 500 dividend yield. We think global dividend stocks continue to offer opportunity. In our view, investing in international income stocks is one way to increase portfolio diversification while reducing sensitivity to volatile U.S interest rates. Still, investing in overseas stocks carries its own set of risks, including the impact of currency exchange and geopolitical turmoil. But there are also a number of positives in this asset class for U.S. investors, including a wide selection of companies that pay dividends, robust industry diversification, and, as we have mentioned, higher yields and lower valuations. The following is a list of Argus BUY-rated international stocks that have a spot in our International Growth & Income Model Portfolio.

Haleon is a pure-play consumer healthcare company focusing on oral health, respiratory health, pain relief, vitamins, supplements, and digestive health across 170 markets. Its products include staples as well as over-the-counter medicines. Haleon was incorporated in 2021 and is headquartered in Brentford, UK.