July 14, 2025 a 07:32 am
KMB: Dividend Analysis - Kimberly-Clark Corporation
Kimberly-Clark Corporation exhibits a robust dividend history with a consistent payment record over 41 years, indicating the company's reliability in returning value to shareholders. The current dividend yield of 4.63% is attractive, particularly for income-focused investors, reflecting the company's efficient capital allocation. The absence of any recent dividend cuts or suspensions further solidifies its stature as a dependable dividend stock.
📊 Overview
The following table provides an overview of key dividend-related metrics for Kimberly-Clark Corporation.
| Sector | Dividend Yield (%) | Current Dividend per Share (USD) | Dividend History (years) | Last Cut or Suspension |
|---|---|---|---|---|
| Consumer Goods | 4.63 | 4.83 | 41 | None |
🗣️ Dividend History
An analysis of the recent dividend history highlights the steady payment trend and the importance of consistent returns for long-term portfolio stability.
| Year | Dividend per Share (USD) |
|---|---|
| 2025 | 2.52 |
| 2024 | 4.88 |
| 2023 | 4.72 |
| 2022 | 4.64 |
| 2021 | 4.56 |
📈 Dividend Growth
Dividend growth rates present an insight into the company's potential for generating increasing cash flows, which is crucial for long-term growth investors.
| Time | Growth (%) |
|---|---|
| 3 years | 2.29 % |
| 5 years | 3.44 % |
The average dividend growth is 3.44% over 5 years. This shows moderate but steady dividend growth.
⚖️ Payout Ratio
Payout ratios based on EPS and FCF measure how much of the earnings and cash flows are being returned to shareholders, indicating sustainability of dividends.
| Key Figure | Ratio (%) |
|---|---|
| EPS-based | 65.01 |
| Free cash flow-based | 61.73 |
At 65.01% (EPS) and 61.73% (FCF), the payout ratios suggest a balanced approach in distributing earnings and cash flows to investors without compromising financial flexibility.
💵 Cashflow & Capital Efficiency
Analyzing cash flow and capital efficiency indicators reveals the company's capability to generate funds and use capital effectively, crucial for sustaining dividend payments and growth.
| Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 5.69% | 6.75% | 4.05% |
| Earnings Yield | 5.76% | 4.29% | 4.22% |
| CAPEX to Operating Cash Flow | 22.29% | 21.63% | 32.05% |
| Stock-based Compensation to Revenue | 0.65% | 0.83% | 0.74% |
| Free Cash Flow / Operating Cash Flow Ratio | 77.71% | 78.37% | 67.95% |
| Return on Invested Capital | 26.04% | 16.39% | 18.21% |
The cash flow metrics demonstrate strong operational efficiency and capital allocation, supporting the company's ability to maintain and potentially increase dividends.
🔍 Balance Sheet & Leverage Analysis
Understanding balance sheet strength and leverage is essential to evaluate financial health and risk, impacting dividend safety and growth prospects.
| Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 901.67% | 886.78% | 1539.67% |
| Debt-to-Assets | 45.78% | 46.78% | 46.87% |
| Debt-to-Capital | 90.02% | 89.87% | 93.90% |
| Net Debt to EBITDA | 1.65 | 2.29 | 2.37 |
| Current Ratio | 0.76 | 0.82 | 0.78 |
| Quick Ratio | 0.54 | 0.54 | 0.47 |
| Financial Leverage | 1969.76% | 1895.52% | 3285.19% |
The high leverage ratios reflect significant debt levels, posing potential risks; however, manageable interest coverage suggests sufficient capacity to service debt obligations.
💡 Fundamental Strength & Profitability
Profitability ratios and margins are indicative of the company's operational efficiency and cost management, influencing its ability to sustain and grow dividends.
| Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 3.03% | 1.93% | 3.54% |
| Return on Assets | 15.38% | 10.17% | 10.76% |
| Net Margin | 12.69% | 8.63% | 9.59% |
| EBIT Margin | 15.94% | 11.33% | 12.99% |
| EBITDA Margin | 19.83% | 15.01% | 16.73% |
| Gross Margin | 35.80% | 34.42% | 30.83% |
| R&D to Revenue | 0% | 0.15% | 0.14% |
Fundamental strengths illustrated by robust profitability and satisfactory margins indicate operational excellence, underpinning reliable dividend returns.
📉 Price Development
✅ Dividend Scoring System
| Criteria | Score | Score Bar |
|---|---|---|
| Dividend Yield | 4 | |
| Dividend Stability | 5 | |
| Dividend Growth | 3 | |
| Payout Ratio | 4 | |
| Financial Stability | 3 | |
| Dividend Continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 3 |
Total Score: 31/40
⭐ Rating
Kimberly-Clark Corporation presents a strong dividend profile with consistent payments and a solid yield, making it a favorable option for income-oriented investors. Moderate growth and high leverage are cautions but manageable within its robust financial framework. Overall, KMB is rated as a strong buy for dividend investors seeking reliability and security.