September 20, 2025 a 03:32 pm
KMB: Dividend Analysis - Kimberly-Clark Corporation
Kimberly-Clark Corporation presents an attractive dividend profile with a solid history of payments over the past 41 years without a noteworthy cut or suspension. The company's dividend yield of 3.85% indicates it continues to reward shareholders consistently.
📊 Overview
Kimberly-Clark operates within the consumer goods sector, offering a robust dividend yield, making it a compelling choice for income-seeking investors.
| Metric | Data |
|---|---|
| Sector | Consumer Goods |
| Dividend yield | 3.85 % |
| Current dividend per share | 4.83 USD |
| Dividend history | 41 years |
| Last cut or suspension | None |
📉 Dividend History
Kimberly-Clark has maintained a robust dividend payment history, emphasizing its commitment to returning value to shareholders. Such consistency is crucial for income investors, showcasing the company’s financial strength and managerial commitment.
| Year | Dividend per Share (USD) |
|---|---|
| 2025 | 3.78 |
| 2024 | 4.88 |
| 2023 | 4.72 |
| 2022 | 4.64 |
| 2021 | 4.56 |
📈 Dividend Growth
The moderate growth in dividends over the past years indicates a steady approach, which is vital for sustained shareholder returns, reflecting the company’s ability to generate increasing cash flows.
| 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 provide insights into a company’s ability to sustain dividend payments. A balance is crucial as overly high ratios may indicate financial strain.
| Key figure | Ratio |
|---|---|
| EPS-based | 65.96 % |
| Free cash flow-based | 76.25 % |
The EPS-based payout ratio of 65.96% is moderately high, suggesting substantial profit distribution as dividends, while the 76.25% FCF payout highlights a considerable cash distribution commitment.
💰 Cashflow & Capital Efficiency
Assessing cash flow and capital efficiency reveals the company's capacity for sustainable growth and dividend payout policy endurance.
| Metric | 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% |
Kimberly-Clark's cash flow stability and capital efficiency are satisfactory, with sufficient yields and controlled CAPEX, fostering healthy returns and supporting dividend reliability.
📑 Balance Sheet & Leverage Analysis
A thoroughly analyzed balance sheet offers insights into the financial health, liquidity, and leverage, crucial for long-term sustainability of dividends.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 9.02 | 8.87 | 15.63 |
| Debt-to-Assets | 45.78% | 46.78% | 47.57% |
| Debt-to-Capital | 90.02% | 89.87% | 93.99% |
| Net Debt to EBITDA | 1.65 | 2.29 | 2.41 |
| Current Ratio | 0.80 | 0.82 | 0.78 |
| Quick Ratio | 0.54 | 0.54 | 0.47 |
| Financial Leverage | 19.70 | 18.95 | 32.85 |
Kimberly-Clark exhibits high leverage ratios with a focus on debt financing, which while typical for capital-intensive industries, warrants cautious observation.
🔍 Fundamental Strength & Profitability
Understanding fundamentals and profitability provides key insights into operational efficiency and profit potential, directly impacting dividend capability.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 3.03% | 1.93% | 3.54% |
| Return on Assets | 0.15% | 0.10% | 0.11% |
| 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% |
| Research & Development to Revenue | 1.69% | 1.53% | 1.45% |
Kimberly-Clark demonstrates moderate profitability, reflected in consistent margins and substantial equity returns which uphold enduring dividend distributions.
📈 Price Development
🔍 Dividend Scoring System
| Criteria | Score | Score Bar |
|---|---|---|
| Dividend yield | 4/5 | |
| Dividend Stability | 5/5 | |
| Dividend growth | 3/5 | |
| Payout ratio | 3/5 | |
| Financial stability | 3/5 | |
| Dividend continuity | 5/5 | |
| Cashflow Coverage | 4/5 | |
| Balance Sheet Quality | 3/5 |
Overall Score: 30/40
✅ Rating
Kimberly-Clark Corporation demonstrates a stable dividend outlook characterized by consistency and manageable growth. While financial strength and debt levels necessitate monitoring, the company's extensive dividend history substantiates a strong long-term investment for income-focused portfolios.