Kimberly-Clark (KMB) Dividend Stock Analysis

Kimberly-Clark Dividend

The Kimberly-Clark (KMB) dividend has been paid every year since 1935 and increased for 53 consecutive years; qualifying the company for the Dividend King List.

Current Dividend Annualized: $5.04

Kimberly-Clark (KMB) Intrinsic Value – Margin of Safety Analysis            

(updated February 2025)

Normalized Diluted Earnings Per Share (TTM): $7.55
Free Cash Flow Per Share (TTM): $7.46
Cash Flow From Operations (CFO) Per Share (TTM): $9.60

Estimated Intrinsic Value: $128

Target Buy Price Based on Required Margin of Safety =  $106
(Required Margin of Safety Based On Risk Stability Grade:

A = 0%, B = 20%, C = 40%, D = 60%, F = 80%)

Target SELL Price Based on Estimated Intrinsic Value = $160
(Allow Overvaluation Adjusted by Risk Stability Grade:

A = 40%, B = 25%, C = 15%, D = 5%, F = 0%)

Risk / Stability Grade: B

A grade indicates a quality company with a strong balance sheet, high earnings quality, and a positive business environment. These stocks require the slimmest margin of safety within the stock universe.

B grade indicates a company with a good balance sheet, good earning quality, and a stable business environment. The margin of safety required should be greater than stocks with an A grade but less than the average stock.

C grade indicates a company with a sufficient balance sheet, at least average earnings quality, and a reasonably stable business environment. The margin of safety required is greater than A & B stocks, but less than D & F stocks.

D grade indicates a company in good standing but has issues that could affect its stability and long term risks. D rated stocks should require a large margin of safety when purchased.

F grade indicates a company with significant issues that are currently affecting its stability and long term risks. Require an extremely large margin of safety for F rated stocks when purchased.

Financial Risk Grade: B

A grade indicates an extremely low probability of a dividend cut. This rating is reserved for companies with strong balance sheets and/or excellent dividend histories.

B grade indicates a very low probability for a dividend cut.

C grade indicates a low probability for a dividend cut and/or average safety risk.

D grade indicates there are issues that should be considered concerning future dividend payments.

F grade indicates serious dividend safety risks. Investors should complete comprehensive due diligence before investing.

Business Quality Grade: A

A grade indicates earnings quality is high or far above average.

B grade indicates earnings quality is good and/or above average.

C grade indicates earnings quality is acceptable or average.

D grade indicates earnings quality is poor and requires thoughtful due diligence.

F grade indicates the quality of the earnings is poor or far below average requiring serious due diligence.

Earnings Report:  12/31/24

AAAMP Portfolios Position Disclosures:
Treasure Trove Dividend (TTD) – LONG
Global Dividend Value (GDV) – None
Dividend Growth & Income (DGI) – None
Global Value (GV) – None
Global Value Aggressive (GVA) – None
Global Conservative Income (GCI) – LONG 
Global High Income (GHI) – None

Company Description

Sector: Consumer Defensive
Industry: Household & Personal Products

Company Overview:
Kimberly-Clark (KMB) is a global consumer goods company that produces essential health and hygiene products, including brands like Huggies, Kleenex, Scott, and Pull-Ups. The company operates in various segments, including personal care, consumer tissue, and baby care, offering a wide range of products sold in over 175 countries. Kimberly-Clark is known for its focus on sustainability and innovation in everyday consumer products.

Company Strengths:
Kimberly-Clark benefits from strong, well-established brands and a broad global market presence. The company’s focus on consumer staples ensures steady demand for its products, which are less sensitive to economic cycles. Kimberly-Clark’s commitment to sustainability and innovation helps it maintain a competitive edge in the consumer goods sector, while its strong distribution network and efficient operations support its consistent cash flow and profitability.

Company Challenges:
Kimberly-Clark faces challenges from rising raw material costs and inflation, which can pressure profit margins, especially in its large-scale manufacturing processes. The company also faces intense competition from other consumer goods companies, including Procter & Gamble and Unilever. Changing consumer preferences, particularly in sustainable and eco-friendly products, may require continuous adaptation of its offerings. Additionally, fluctuations in currency exchange rates and global supply chain disruptions could impact its international business.

Disclaimer:
While Arbor Investment Planner has used reasonable efforts to obtain information from reliable sources, we make no representations or warranties as to the accuracy, reliability, or completeness of third-party information presented herein. The sole purpose of this analysis is information. Nothing presented herein is, or is intended to constitute investment advice. Consult your financial advisor before making investment decisions.