Over the last week, the capital markets experienced a whirlwind of chaotic selling. Since President Donald Trump announced new tariff policies on April 2, the S&P 500 and Nasdaq Composite each declined about 10% as of this writing.

Growth stocks have been particularly vulnerable to the ongoing selling. And in a way, that makes a lot of sense. Many companies in the technology realm have experienced a ride for the ages over the last couple of years thanks to the artificial intelligence (AI) megatrend.

Given the uncertainty of the new tariff policies, my hunch is that investors are deciding to take some gains in their growth stocks and stockpile cash for the time being. While businesses across each major industry sector could face some headwinds from the tariffs, smart investors know that there are still good opportunities sitting quietly in the background.

Let's explore why a consumer health company called Kenvue (KVUE 1.12%) could be an under-the-radar stock to buy right now, especially for dividend investors looking for passive income amid the market volatility.

What does Kenvue do?

Kenvue was spun off from Johnson & Johnson in 2023. Essentially, the Kenvue business represents what was J&J's consumer health portfolio.

While you may not be too familiar with Kenvue's name, I'm sure you know many of its brands such as Listerine, Nicorette, Neutrogena, Aveeno, Tylenol, Motrin, Zyrtec, Rhinocort, Benadryl, Band-Aid, Rogaine, and Neosporin.

Image source: Getty Images.

Why Kenvue might be a good stock to buy right now?

I will admit that Kenvue is not entirely immune from tariffs. Depending on where the company sources raw materials for its products, it is possible that Kenvue's supply chain could experience hiccups in the near term. As a result, the company may be forced to pass on rising costs to consumers. Nevertheless, I still see Kenvue as a good opportunity right now.

When prices for goods rise, it's not unreasonable for consumers to begin looking for lower-cost alternatives. However, many of the Kenvue brands I referenced are consumer staples products. Kenvue sells products that people need -- regardless of economic conditions. For this reason, I think the business is less exposed to the new tariff policies and could actually exhibit growth over the following quarters.

Moreover, healthcare products tend to exhibit some degree of inelastic demand. This means that even when prices rise, consumers tend to stick with brands that they trust and are already familiar with. In my eyes, Kenvue squarely fits this criteria.

Good value and a nice dividend make a compelling case for Kenvue

In an effort to level expectations, I want to make it clear that Kenvue is not a growth stock. But given the degree of market fluctuations, growth stocks may not be your best bet. I think a prudent strategy for investors right now is to identify businesses that are positioned for growth, regardless of how long the tariffs last or how these import levies impact their underlying operation.

Kenvue is in a unique position because even though tariffs will likely cause some degree of disruption for the company, I don't think sales or profit margins are going to deteriorate given the diversity of its consumer staples portfolio. For these reasons, I don't think the company's dividend is at risk.

Right now, an investment in Kenvue comes with an attractive 3.7% dividend yield. To put that into perspective, that is almost 3 times the yield for the SPDR S&P 500 ETF Trust.

For investors looking for a bit of stability, I think a position in Kenvue could fit the bill while providing welcome dividend income for your portfolio.