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Kimberly-Clark maintains dividend streak into 90th year

Published 08/01/2024, 08:32 PM
KMB
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Kimberly-Clark Corporation (NYSE: NYSE:KMB), known for its portfolio of personal care and hygiene products, announced its regular quarterly dividend of $1.22 per share, continuing a 90-year tradition of dividend payments to its shareholders.

The upcoming dividend is scheduled to be paid on October 2, 2024, to stockholders on record as of September 6, 2024.

To be sure, the company has not only paid dividends for nine decades but has also increased the dividend amount annually for 52 consecutive years.

Kimberly-Clark's broad range of products, including well-known brands such as Huggies, Kleenex, and Scott, holds leading market positions in approximately 70 countries. The company emphasizes sustainable practices in its operations and has been recognized for its ethical business conduct and innovation, receiving accolades such as being named one of the World's

Kimberly Clark delivered robust earnings per share (EPS) in the second quarter of 2024 despite facing challenges from pulp inflation. The company's volumes met expectations, marking the second consecutive quarter of positive volume growth.

RBC Capital maintained its Outperform rating for Kimberly Clark, with a price target of $165, citing the company's effective strategy execution.

In its Second Quarter 2024 Earnings Call, Kimberly Clark reported improvements in market share and financial performance, particularly in North America. The company beat margin and EPS expectations for the quarter and plans to increase investments in the latter half of the year.

Despite the divestiture of the personal protective equipment segment and expected cost inflation, the company remains focused on innovation, pricing discipline, and strategic investments.

RBC Capital raised its earnings estimate for Kimberly Clark for the full year 2024, based on the company's recent performance and increased EPS guidance.

InvestingPro Insights

Kimberly-Clark Corporation (NYSE: KMB) continues to demonstrate financial resilience and shareholder commitment, as reflected in their recent dividend announcement. With a market capitalization of $45.49 billion and a dividend yield of 3.61%, the company remains an attractive option for income-focused investors. Here are some key insights from InvestingPro:

InvestingPro data shows Kimberly-Clark is trading at a P/E ratio of 19.94, which adjusts to 18.21 for the last twelve months as of Q2 2024. This suggests that the company is valued by the market at a price relatively close to its near-term earnings potential. Moreover, the company's PEG ratio during the same period stands at 0.51, indicating potential value based on earnings growth expectations.

From an operational standpoint, Kimberly-Clark has reported a gross profit margin of 36.2% over the last twelve months as of Q2 2024, underscoring the company's ability to maintain profitability in its operations. However, it's worth noting that revenue growth has seen a slight decline of 0.32% during this period, which may warrant attention from investors looking at the company's growth trajectory.

InvestingPro Tips highlight that Kimberly-Clark has maintained its dividend payments for 54 consecutive years, showcasing a strong track record of returning value to shareholders. Additionally, analysts predict the company will be profitable this year, which aligns with the positive EBITDA growth of 10.53% over the last twelve months as of Q2 2024. For investors seeking more comprehensive analysis, there are 8 additional InvestingPro Tips available, which can be found at InvestingPro.

These insights and data points provide a nuanced view of Kimberly-Clark's financial health and market position, complementing the company's commitment to consistent dividend payments and sustainable business practices.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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