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Jim Cramer called Kimberly-Clark hated, but the real story behind its dividend streak, its free cash flow, and a social media disinformation campaign in China raises harder questions than Cramer let on.

Jim Cramer has a frank label for one of the market’s oldest dividend growers. Talking about Kimberly-Clark (NASDAQ:KMB | KMB Price Prediction) on CNBC on October 15, 2026, he said: “This was a premier name, and it’s got a 5.5% dividend, whatever you want to call it, dividend king. And it’s hated, and it’s hated because the last couple of quarters have been not great.”

His view hasn’t changed since summer. On Mad Money in July, Cramer called the Huggies and Kleenex maker “not just a dividend aristocrat with 54 consecutive years of dividend increases, this is a dividend king” and pointed out that “the stock itself has been going nowhere for ages.” CNBC reported the next day that Kimberly-Clark was having its best week in four years.

Checking Cramer’s Dividend Math The streak checks out. As Cramer said, Kimberly-Clark’s dividend growth run reached 54 consecutive years as of the second quarter, which qualifies it as a Dividend King (we ranked ten Kings by valuation right now in a free report).

The yield he quoted is too high. The quarterly payout is $1.28. At the current price of $107.04, that works out to a yield of about 4.78%. Even at the $98.29 close on October 13, the yield was roughly 5.21%. The streak itself is also slowing. This year’s increase from $1.26 to $1.28 was only about 1.59%.

Free Cash Flow Is the Weak Spot in the Dividend Measured against earnings, the payout looks fine. The annualized dividend equals about 68% of 2025 adjusted EPS of $7.53. Cash coverage is much lower. In 2025, free cash flow came to $1.639 billion while dividends totaled $1.66 billion, so the company paid out roughly 101% of its free cash flow. Through the first half of 2026, free cash flow of $877 million covered dividends at about 96%.

A big reason is heavy spending on the company’s transformation. Capital expenditures rose to $1.138 billion in 2025 from $721 million in 2024. The balance sheet can absorb that. Total debt dropped to $6.517 billion at the end of June from $7.296 billion at year-end, and cash rose to $956 million.

Why Investors Turned on Kimberly-Clark Cramer’s “not great” description of recent quarters is accurate. In its second-quarter SEC filing, Kimberly-Clark reported revenue of $4.19 billion, missing the $4.22 billion estimate. North American sales fell 1.2%. A social media disinformation campaign in China about diaper quality cut organic sales by about 50 bps. The company also exited its U.S. private label diaper business and dealt with a fire at a Los Angeles distribution center. Management now expects adjusted EPS attributable to Kimberly-Clark to decline by a low single-digit amount in constant currency this year.

The pending acquisition of Kenvue (NYSE:KVUE), valued at about $48.7 billion, has added uncertainty. The stock is down 6.84% over the past year and 0.99% over five years.

Catalysts Behind the October Rally Several worries eased last week. Kimberly-Clark released preliminary third-quarter revenue and EPS that topped Wall Street estimates. Chinese authorities said they found no formaldehyde in Huggies diapers. The European Commission approved the Kenvue deal on the condition that the company sell some feminine care brands in the region, and Brazilian regulators also signed off (per CNBC and MLex reports). The shares are up 8.9% over the past week and 10.11% year to date.

Verdict: Cramer Is Mostly Right Cramer has the big picture right, though his yield figure is high. Kimberly-Clark has beaten EPS estimates for five consecutive quarters, expanded its adjusted gross margin by 190 bps last quarter, and trades at about 14 times 2025 adjusted earnings. For a Dividend King, that valuation suggests investors dislike the stock. The recent selloff shows investor frustration with the last few quarters.

The real yield is about 4.8%, though, and with free cash flow just covering the dividend, investors should expect small annual increases for now. The next milestones are the full third-quarter report, completion of the Kenvue deal by the end of 2026, and whether free cash flow coverage improves once capital spending comes down.

Contact [email protected] for any questions or corrections.

Final Third Quarter and Nine Months results to be Released November 5, 2026

, /PRNewswire/ -- Kimberly-Clark Corporation (NASDAQ: KMB) ("Kimberly-Clark"), a core S&P 500 component, today provided estimated preliminary financial data for the three months ended September 30, 2026, on a Current Report on Form 8-K filed with the U.S. Securities and Exchange Commission.

Considering these preliminary results, Kimberly-Clark's outlook for 2026 remains consistent with previous expectations; specifically:

2026 Organic Sales Growth to be approximately 100 basis points below its weighted average category growth in the categories and countries it competes. This primarily reflects realized and potential unfavorable impacts amounting to approximately 100 basis points at a total company level from previously disclosed China social media disruptions. Kimberly-Clark also noted that its weighted average category growth is now approximately 1.7 percent on a trailing 12-month basis. Adjusted Operating Profit to grow mid-single digits on a constant-currency basis. Adjusted Earnings per Share from Continuing Operations to grow high single digits on a constant-currency basis. Adjusted Earnings per Share Attributable to Kimberly-Clark to see a low single digit decline on a constant-currency basis. This outlook reflects assumptions subject to change given the macro environment. In addition, this outlook excludes the impact of any potential acquisitions, including Kimberly-Clark's previously announced pending acquisition of Kenvue Inc. (the "Kenvue Acquisition"), divestitures and other items that have not yet been identified and quantified.

Kimberly-Clark will issue its final third quarter 2026 results on Thursday, November 5.  A press release and supplemental materials will be issued at approximately 6:30 a.m. EST.

Kimberly-Clark management will then host a live Q&A session with analysts beginning at 8:00 a.m. EST.

The earnings release, supplemental materials, and Kimberly-Clark's Q&A session can be accessed at the Investor Relations section of the Kimberly-Clark website. A replay of the webcast will be available following the event through the same website.

About Kimberly-Clark
Kimberly-Clark (NASDAQ: KMB) and its trusted brands are an indispensable part of life for people in more than 175 countries and territories. Our portfolio of brands, including Huggies, Kleenex, Scott, Kotex, Cottonelle, Poise, Depend, Pull-Ups, Goodnites, Intimus, Plenitud, Sweety, Softex, Viva and WypAll, hold No. 1 or No. 2 share positions in approximately 70 countries. Our company's purpose is to deliver Better Care for a Better World. We are committed to using sustainable practices designed to support a healthy planet, build strong communities, and enable our business to thrive for decades to come. The KMB stock is a large cap growth and value stock and core S&P 500 equity held by more than 400 Exchange Traded Funds. Kimberly-Clark is considered a dividend aristocrat, having paid a cash dividend to shareholders for 92 consecutive years and increased its dividend for 54 consecutive years. To keep up with the latest news and learn more about the company's more than 150-year history of innovation, visit the Kimberly-Clark website.

Non-GAAP Financial Information
This press release includes certain financial measures, such as Organic Sales Growth, Adjusted Operating Profit, Adjusted Earnings per Share from Continuing Operations, and Adjusted Earnings per Share Attributable to Kimberly-Clark, not calculated in accordance with generally accepted accounting principles in the United States ("GAAP"). Unless specifically stated, all discussions regarding non-GAAP financial measures reflect results from our continuing operations for all periods presented.

We use these non-GAAP financial measures to assist in comparing our performance on a consistent basis for purposes of business decision making by removing the impact of certain items that we do not believe reflect our underlying and ongoing operations. We believe that presenting these non-GAAP financial measures is useful to investors because it (i) provides investors with meaningful supplemental information regarding financial performance by excluding certain items, (ii) permits investors to view performance using the same tools that management uses to budget, make operating and strategic decisions, and evaluate historical performance, and (iii) otherwise provides supplemental information that may be useful to investors in evaluating our results. We believe that the presentation of these non-GAAP financial measures, when considered together with the corresponding U.S. GAAP financial measures and the reconciliation to those measures, provides investors with additional understanding of the factors and trends affecting our business than could be obtained absent these disclosures.

These non-GAAP financial measures are not meant to be considered in isolation or as a substitute for the comparable GAAP measures, and they should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. There are limitations to these non-GAAP financial measures because they are not prepared in accordance with GAAP and may not be comparable to similarly titled measures of other companies due to potential differences in methods of calculation and items being excluded. We compensate for these limitations by using these non-GAAP financial measures as a supplement to the GAAP measures and by providing reconciliations of the non-GAAP and comparable GAAP financial measures.

The non-GAAP financial measures referenced in this press release are presented on a forward-looking basis. Kimberly-Clark does not provide a reconciliation of these forward-looking non-GAAP financial measures to the most directly comparable GAAP financial measures on a forward-looking basis because it is unable to predict certain adjustment items without unreasonable effort. Please note that these items could be material to Kimberly-Clark's results calculated in accordance with GAAP.

Cautionary Statement Regarding Forward-Looking Information
Certain matters contained in this press release, including expectations regarding our 2026 outlook and related guidance, including raw material, energy and other input costs, the anticipated charges and savings from the 2024 Transformation Initiative, cash flow and uses of cash, growth initiatives, innovations, marketing and other spending, net sales, anticipated currency rates and exchange risks, including the impact in Argentina and Türkiye, effective tax rate, contingencies and anticipated transactions of Kimberly-Clark, including dividends, share repurchases and pension contributions, constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act and are qualified by the inherent risks and uncertainties surrounding future expectations generally. There can be no assurance that these future events will occur as anticipated or that our results will be as estimated. Actual results could differ materially from those currently anticipated due to a number of risks and uncertainties, many of which are beyond our control. Forward-looking statements are based upon the expectations and beliefs of the management of Kimberly-Clark as of the date they were made and speak only as of the date they were made. We undertake no obligation to publicly update any forward-looking statements. Some of these forward-looking statements can be identified by words like "anticipate," "approximately," "believe," "continue," "could," "estimate," "expect," "forecast," "intend," "may," "outlook," "plan," "possible," "potential," "predict," "project," "seek," "should," "target," "will" or "would," the negative of these words, other terms of similar meaning or the use of future dates.

The assumptions used as a basis for the forward-looking statements include many estimates that, among other things, depend on the achievement of future cost savings and projected volume increases. In addition, many factors outside our control, including risks and uncertainties around the Kenvue Acquisition (including the risk that the anticipated benefits and synergies of the Kenvue Acquisition may not be realized when expected or at all, the terms and scope of the expected financing in connection with the Kenvue Acquisition may prove to be less favorable than currently expected, that the Kenvue Acquisition may not be completed in a timely manner or at all and the risk of litigation related to the Kenvue Acquisition), the International Family Care and Professional joint venture transaction with Suzano S.A. (including risks relating to the incurrence of significant transaction costs, adverse market reactions, regulatory or legal challenges and operational disruptions), risks that we are not able to realize the anticipated benefits of the 2024 Transformation Initiative (including risks related to disruptions to our business or operations or related to any delays in implementation), war in Ukraine (including the related responses of consumers, customers, and suppliers and sanctions issued by the U.S., the European Union, Russia or other countries), government trade or similar regulatory actions (including current and potential trade and tariff actions affecting the countries where we operate and the resulting negative impacts on our supply chain, commodity costs, and consumer spending), pandemics, epidemics, fluctuations in foreign currency exchange rates, the prices and availability of our raw materials, supply chain disruptions, disruptions in the capital and credit markets, counterparty defaults (including  customers, suppliers and financial institutions with which we do business),  failure to realize the expected benefits or synergies from our acquisition and  disposition activity, impairment of goodwill and intangible assets and our  projections of operating results and other factors that may affect our  impairment testing, changes in customer preferences, severe weather conditions,  regional instabilities and hostilities (including the war in Iran), potential  competitive pressures on selling prices for our products, energy costs, general  economic and political conditions globally and in the markets in which we do  business, as well as our ability to maintain key customer relationships, could  affect the realization of these estimates.    

Additional information and factors concerning these risks, uncertainties and assumptions can be found in Kimberly-Clark's filings with the SEC, including the risk factors discussed in Kimberly-Clark's most recent Annual Report on Form 10-K, as updated by its Quarterly Reports on Form 10-Q and future filings with the SEC. Forward-looking statements included herein are made only as of the date hereof and Kimberly-Clark undertakes no obligation to update any forward-looking statements, or any other information in this press release, as a result of new information, future developments or otherwise, or to correct any inaccuracies or omissions in them which become apparent. All forward-looking statements in this press release are qualified in their entirety by this cautionary statement.

[KMB-F] [KMB-C]

SOURCE Kimberly-Clark Corporation

Kimberly-Clark has raised its dividend for over five decades, but a looming $48 billion acquisition and razor-thin cash flow coverage are putting that streak under pressure most income investors haven't noticed yet.

Kimberly-Clark (NASDAQ:KMB | KMB Price Prediction) paid its third straight $1.28 quarterly dividend on October 2, 2026. The company says the raise behind that check extended its run to 54 consecutive years of increases. The payout records support that claim as far back as they go. The quarterly rate has gone up every year since 1999, climbing from $0.26 to $1.28. Retirees who own the stock need to know whether there is still enough cash behind the check.

Free Cash Flow Barely Covers the Payout
At $97.91, the $5.12 forward dividend works out to a yield of roughly 5.2%. The coverage is lower than that yield suggests. In 2025, operating cash flow fell to $2.777 billion and capex rose to $1.138 billion, which left free cash flow at $1.639 billion. Dividends cost $1.660 billion, or about 101% of free cash flow.

The first half of 2026 was a little better. Free cash flow came to $877 million, and dividends used up about 96% of it. Against adjusted 2025 EPS of $7.53, the payout ratio is about 68%. Against trailing GAAP EPS of $5.07, it rises to about 101%.

Pending Acquisition Arrives With Little Balance Sheet Cushion
Kimberly-Clark carries total liabilities of $16.680 billion against shareholders’ equity of only $1.874 billion. The company has been protecting the dividend by cutting buybacks. Repurchases dropped to $141 million in 2025 from $1 billion in 2024. On top of that is the roughly $48.7 billion purchase of Kenvue (NYSE:KVUE). Chief Executive Mike Hsu sounds confident:

“Our pending acquisition of Kenvue remains on track to close by the end of this year. In sum, our vision for a new kind of health and wellness company, reimagined care for billions of people around the world, and lasting value for shareholders is becoming clearer by the day.”

On the August call, management added: “The closer we look at this thing, the better it gets.”

Pricing Power Is Being Tested
Second-quarter adjusted EPS of $2.12 came in above the $2.006 consensus. Revenue of $4.189 billion missed expectations, though. Part of the margin story was temporary: a $45 million tariff refund helped lift gross margin to 38.8%. Category growth in North America slowed from 3.7% to 1.9%. Management also expects about $150 million in second-half input-cost pressures and only low single digit price increases.

“Our team is executing with agility and addressing discrete headwinds that will moderate our growth and earnings potential in 2026.”

Guidance now calls for adjusted EPS attributable to Kimberly-Clark to show a low-single-digit decline in constant currency.

How the Peers Compare

Company
Dividend Yield
Trailing P/E
Beta

Kimberly-Clark
5.21%
19x
0.275

Procter & Gamble (NYSE:PG)
2.82%
23x
0.377

Colgate-Palmolive (NYSE:CL)
2.37%
35x
0.322

Procter & Gamble pays out about 64% of trailing earnings. Colgate-Palmolive pays out about 82%. Kimberly-Clark’s higher yield likely reflects, in part, its thinner coverage.

Verdict: The Dividend Holds, With Less Room for Error
The dividend looks secure so far. The company sells essential products, has delivered 10 consecutive quarters of volume-plus-mix growth, and has five decades of raises at stake. Management has strong incentive to protect the streak, and increases may stay small while Kenvue is being integrated. Free cash flow covering the payout only about one to one means Kimberly-Clark has thinner coverage than its peers. Procter & Gamble has the widest margin of the three. Income investors who own Kimberly-Clark are collecting a reliable 5% yield that comes with more risk than the stock’s reputation suggests (we ranked ten of the longest-running Dividend Kings by valuation in a free report you can grab here).

Contact [email protected] for any questions or corrections.

Key Takeaways KMB's International Personal Care markets delivered sequential improvements and double-digit gains.KMB gained 390 basis points of diaper share in Indonesia and 70 basis points in Brazil.KMB's Arbex venture with Suzano combines scale and tissue expertise to build a global hygiene competitor. Kimberly-Clark Corporation (KMB - Free Report) continues to see progress in its global personal care business, with its repeatable playbook delivering sequential improvements and double-digit gains across International Personal Care markets, including India, Southeast Asia and Indonesia. The momentum is also reflected in diaper market share, with gains of 390 basis points in Indonesia and 70 basis points in Brazil. These developments reflect progress across international personal care markets and gains in diaper market share.

The formation of Arbex represents a strategic joint venture designed to create a world-class global competitor in the hygiene and tissue business. Kimberly-Clark views the partnership as a strategic combination rather than an effort to move away from an existing problem or challenge. The venture brings together Suzano’s scale and capabilities with Kimberly-Clark’s commercial capabilities and knowledge of tissue making. By combining these capabilities, the partnership is intended to create a global competitor in the hygiene and tissue business.

Kimberly-Clark remains highly enthusiastic about the future of the Arbex team and the opportunities ahead for the business. The company also believes that its clear focus on global personal care should help drive execution as Arbex moves forward. The company said that this clear focus on global personal care should help drive execution. Overall, Arbex gives Kimberly-Clark additional focus, while management expects its global personal care emphasis to help drive execution. Continued progress across IPC markets and gains in diaper market share demonstrate how the playbook is translating across geographies.

The Zacks Rundown for KMBKMB stock has lost 11.2% in the past three months compared with the industry’s decline of 1.3%.

Image Source: Zacks Investment Research

From a valuation standpoint, KMB trades at a forward price-to-earnings ratio of 13.38, lower than the industry’s average of 18.52. KMB currently carries Zacks Rank #3 (Hold).

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for KMB’s current fiscal-year earnings implies a year-over-year decline of 2.4%, and the same for next fiscal year earnings implies growth of 2.1%.

Image Source: Zacks Investment Research

Stocks to ConsiderSome better-ranked stocks have been discussed below:

Koninklijke Ahold Delhaize N.V. (ADRNY - Free Report) operates retail food stores and e-commerce in the Netherlands, the United States, and internationally. ADRNY currently carries a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for ADRNY's current fiscal-year sales and earnings implies growth of 3.9% and 4.3%, respectively, from the year-ago actuals. ADRNY reported a trailing four-quarter average earnings surprise of 5.4%.

Purple Innovation, Inc. (PRPL - Free Report) designs, manufactures, and sells sleep and other products in the United States and internationally. PRPL currently carries a Zacks Rank #2.

The Zacks Consensus Estimate for PRPL's current fiscal-year sales and earnings implies growth of 0.4% and 20.8%, respectively, from the year-ago actuals. PRPL delivered a trailing four-quarter earnings surprise of 21.3%, on average.

Henkel AG & Co. (HENKY - Free Report) engages in the adhesive technologies and consumer brands businesses in Europe, India, the Middle East, Africa, North America, Latin America and the Asia Pacific. At present, HENKY carries a Zacks Rank of 2.

The Zacks Consensus Estimate for HENKY’s current fiscal-year sales and earnings suggests growth of 3.4% and 2.7%, respectively, from the year-ago reported figures. 

, /PRNewswire/ -- Kimberly-Clark Corporation (NASDAQ: KMB) ("Kimberly-Clark") announced today the commencement, in connection with its previously announced pending acquisition ("Acquisition") of Kenvue Inc. (NYSE: KVUE) ("Kenvue"), of an exchange offer (each an "Exchange Offer" and, collectively, the "Exchange Offers") for any and all outstanding notes (the "Kenvue Notes") issued by Kenvue for up to $7,000,000,000 aggregate principal amount of new notes to be issued by Kimberly-Clark (the "Kimberly-Clark Notes") and cash.

The following table sets forth the Exchange Consideration, Early Participation Premium, Cash Payment and Total Consideration for each series of Kenvue Notes as set forth in the table below:

Title of Series of
Kenvue Notes

CUSIP/ISIN No.
of Kenvue
Notes(1)

Principal
Amount
Outstanding of
Kenvue Notes

Kimberly-Clark
Notes to be
Issued in
Exchange for
Kenvue Notes

Cash Payment
(2)(3)

Exchange
Consideration –
Principal Amount
of Kimberly-Clark
Notes(2)(4)

Early
Participation
Premium –
Principal
Amount of
Kimberly-Clark
Notes(2)(4)(5)

Total Consideration(2)(3)(4)(5)(6)

Principal
Amount of
Kimberly-Clark
Notes

Cash

5.050% Senior
Notes due 2028

49177JAF9 /
US49177JAF93

$1,000,000,000

5.050% Senior
Notes due 2028

$1.00

$970

$30

$1,000

$1.00

5.000% Senior
Notes due 2030

49177JAH5 /
US49177JAH59

$1,000,000,000

5.000% Senior
Notes due 2030

$1.00

$970

$30

$1,000

$1.00

4.850% Senior
Notes due 2032

49177JAS1 /
US49177JAS15

$750,000,000

4.850% Senior
Notes due 2032

$1.00

$970

$30

$1,000

$1.00

4.900% Senior
Notes due 2033

49177JAK8 /
US49177JAK88

$1,250,000,000

4.900% Senior
Notes due 2033

$1.00

$970

$30

$1,000

$1.00

5.100% Senior
Notes due 2043

49177JAM4 /
US49177JAM45

$750,000,000

5.100% Senior
Notes due 2043

$1.00

$970

$30

$1,000

$1.00

5.050% Senior
Notes due 2053

49177JAP7 /
US49177JAP75

$1,500,000,000

5.050% Senior
Notes due 2053

$1.00

$970

$30

$1,000

$1.00

5.200% Senior
Notes due 2063

49177JAR3 /
US49177JAR32

$750,000,000

5.200% Senior
Notes due 2063

$1.00

$970

$30

$1,000

$1.00

_____________________________________

(1)

No representation is made as to the correctness or accuracy of the CUSIP numbers listed in this press release or printed on the Kenvue Notes. Such CUSIP numbers are provided solely for the convenience of the holders of Kenvue Notes.

(2)

For each $1,000 principal amount of Kenvue Notes accepted for exchange.

(3)

The Cash Payment (as defined herein) will be paid to Eligible Holders (as defined herein) on the Settlement Date. In order to be eligible to receive the Cash Payment with respect to a particular series of Kenvue Notes, Eligible Holders of such series of Kenvue Notes must, at or prior to the Early Participation Date (as defined herein), validly tender (and not validly withdraw) their Kenvue Notes of such series. Eligible Holders of Kenvue Notes that tender such Kenvue Notes will be deemed to have given consent to the Proposed Amendments (as defined herein) in respect of the applicable series of Kenvue Notes tendered.

(4)

The Kimberly-Clark Notes (as defined herein) will accrue interest from (and including) the most recent date on which interest has been paid on the corresponding series of Kenvue Notes accepted in the Exchange Offers; provided that the amount of accrued and unpaid interest shall only be equal to the accrued and unpaid interest on the principal amount of Kenvue Notes equal to the aggregate principal amount of Kimberly-Clark Notes an Eligible Holder receives, which may be less than the principal amount of corresponding Kenvue Notes tendered for exchange if such holder does not receive the Early Participation Premium (as defined herein).

(5)

The Early Participation Premium will be paid to Eligible Holders on the Settlement Date. In order to be eligible to receive the Early Participation Premium with respect to a particular series of Kenvue Notes, Eligible Holders of such series of Kenvue Notes must, at or prior to the Early Participation Date, validly tender (and not validly withdraw) their Kenvue Notes of such series.

(6)

Includes the Cash Payment and the Early Participation Premium.

Concurrently with the Exchange Offers, Kimberly-Clark (on behalf of Kenvue) is soliciting consents (each, a "Consent Solicitation" and, collectively, the "Consent Solicitations") from Eligible Holders (as defined herein) to adopt certain proposed amendments to the indenture (the "Kenvue Indenture") governing the Kenvue Notes with respect to a particular series of Kenvue Notes to (i) eliminate substantially all of the restrictive covenants in the Kenvue Indenture, (ii) eliminate certain of the events which may lead to an "Event of Default" in the Kenvue Indenture (other than for the failure to pay principal, premium or interest), (iii) eliminate the SEC reporting covenant in the Kenvue Indenture, and (iv) eliminate certain restrictions on Kenvue in the Kenvue Indenture from consolidating with or merging into any other person or conveying, transferring or leasing all or any of its properties and assets to any person (collectively, the "Proposed Amendments"). The Proposed Amendments to the Kenvue Indenture with respect to a particular series of Kenvue Notes require the consent of the holders of at least a majority in principal amount of such series of the Kenvue Notes then outstanding under the Kenvue Indenture each voting as a separate class (the "Requisite Consents"). If the Requisite Consents are obtained for a particular series of Kenvue Notes, any remaining Kenvue Notes of such series not tendered and exchanged for Kimberly-Clark Notes will be governed by the Kenvue Indenture as amended by the Proposed Amendments. If an Eligible Holder tenders Kenvue Notes in an Exchange Offer, such Eligible Holder will be deemed to deliver its consent to the Proposed Amendments with respect to the principal amount of such tendered Kenvue Notes.

The Exchange Offers and Consent Solicitations are being made pursuant to the terms and subject to the conditions set forth in the confidential offering memorandum and consent solicitation statement dated September 28, 2026, and are conditioned upon the consummation of the Acquisition, which condition may not be waived by Kimberly-Clark, and certain other conditions that may be waived by Kimberly-Clark. The completion of the Acquisition is expected to take place in the fourth quarter of 2026, subject to the satisfaction of certain customary closing conditions.

Each Exchange Offer will expire at 5:00 p.m., New York City time, on October 27, 2026, unless extended or terminated (such date and time with respect to an Exchange Offer, as may be extended, the "Expiration Date"). Each Consent Solicitation will expire at the Expiration Date. The settlement date (the "Settlement Date") for the Exchange Offers is expected to occur promptly after the Expiration Date.

For each $1,000 principal amount of Kenvue Notes validly tendered (and not validly withdrawn before the Early Participation Date) and accepted by Kimberly-Clark (i) at or prior to 5:00 p.m., New York City time, on October 9, 2026, unless extended or terminated (the "Early Participation Date"), participating holders of such Kenvue Notes will be eligible to receive $970 in principal amount of Kimberly-Clark Notes (the "Exchange Consideration"), an early participation premium, payable in principal amount of Kimberly-Clark Notes, of $30 (the "Early Participation Premium"), and $1.00 in cash (the "Cash Payment" and together with the Exchange Consideration and the Early Participation Premium, the "Total Consideration") and (ii) after the Early Participation Date but at any time at or prior to the Expiration Date, participating holders of such Kenvue Notes will be eligible receive the Exchange Consideration (the "Expiration Date Exchange Consideration"), subject to rounding as described herein. Tenders of Kenvue Notes may not be withdrawn after 5:00 p.m., New York City time, on October 9, 2026 (the "Withdrawal Deadline"), except in the limited circumstances where additional withdrawal rights are required by law. In addition, consents to the Proposed Amendments for any particular series of Kenvue Notes may not be withdrawn or revoked after the Withdrawal Deadline. Consents may be revoked only by validly withdrawing the associated tendered Kenvue Notes. Eligible Holders who validly tender at or prior to the Withdrawal Deadline and have not validly withdrawn the tender of their Kenvue Notes of the applicable series before the Withdrawal Deadline will not be able to withdraw their Kenvue Notes or revoke their consents after the Withdrawal Deadline. As used herein, a "valid withdrawal" means valid withdrawal prior to the Withdrawal Deadline.

To be eligible to receive the Early Participation Premium and the Cash Payment, Eligible Holders must (i) have validly tendered and not have validly withdrawn their Kenvue Notes of the applicable series at or prior to the Early Participation Date and (ii) beneficially own such Kenvue Notes at the Expiration Date. The Early Participation Premium and the Cash Payment will be paid on the Settlement Date to the noteholder of record on the Expiration Date. To be eligible to receive the Expiration Date Exchange Consideration, Eligible Holders must validly tender (and not validly withdraw) their Kenvue Notes after the Early Participation Date and at or prior to the Expiration Date. Because each Exchange Offer and Consent Solicitation is subject to the satisfaction of certain conditions as described herein, including, among other things, the consummation of the Acquisition, Eligible Holders of Kenvue Notes will not receive the Early Participation Premium, the Cash Payment, the Exchange Consideration or the Total Consideration, as applicable, unless the Acquisition is consummated.

The Kimberly-Clark Notes will be issued in minimum denominations of $2,000 and integral multiples of $1,000 in excess thereof. Kimberly-Clark will not accept any tender that would result in the issuance of less than $2,000 principal amount of any series of Kimberly-Clark Notes. The aggregate principal amount of each series of Kimberly-Clark Notes issued to each participating holder for each series of Kenvue Notes validly tendered (and not validly withdrawn) and accepted by Kimberly-Clark will be rounded down, if necessary, to the nearest whole multiple of $1,000 in excess of $2,000. This rounded amount will be the principal amount of Kimberly-Clark Notes you will receive, and Kimberly-Clark will pay a cash amount equal to the difference between the principal amount of the Kimberly-Clark Notes to which you would otherwise be entitled and the principal amount of the Kimberly-Clark Notes actually issued, plus any accrued and unpaid interest on such principal amount not received as a result of rounding down from the last interest payment date and up to (but not including) the Settlement Date.

Each series of Kimberly-Clark Notes will have the same interest rate, interest payment dates, maturity date and optional redemption prices as the corresponding series of Kenvue Notes. No accrued and unpaid interest is payable upon acceptance of any Kenvue Notes for exchange in the Exchange Offers and Consent Solicitations. However, the first interest payment on any Kimberly-Clark Notes will include the accrued and unpaid interest on the Kenvue Notes tendered in exchange therefor so that a tendering Eligible Holder will receive the same interest payment it would have received had its Kenvue Notes not been tendered in the Exchange Offers and Consent Solicitations; provided that the amount of accrued and unpaid interest shall only be equal to the accrued and unpaid interest on the principal amount of Kenvue Notes equal to the aggregate principal amount of Kimberly-Clark Notes an Eligible Holder receives, which may be less than the principal amount of corresponding Kenvue Notes tendered for exchange if such holder does not receive the Early Participation Premium. For the avoidance of doubt, Kenvue will remain responsible for paying any interest that accrues on any Kenvue Notes and is payable on any interest payment date occurring prior to the Settlement Date, as well as any interest that is required to be paid on Kenvue Notes that remain outstanding following the Settlement Date. The Kimberly-Clark Notes will be general, unsecured senior obligations of Kimberly-Clark and will rank equally in right of payment with all of Kimberly-Clark's existing and future unsecured senior indebtedness, liabilities and other obligations and will be effectively subordinated to all of Kimberly-Clark's existing and future secured indebtedness to the extent of the value of the assets securing such indebtedness.

The Kimberly-Clark Notes have not been registered under the U.S. Securities Act of 1933, as amended (the "Securities Act"), or securities laws of any state or any other jurisdiction. Unless registered, the Kimberly-Clark Notes may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act. The Exchange Offers and Consent Solicitations will only be made, and the Kimberly-Clark Notes are only being offered and will only be issued, (a) to persons reasonably believed to be "qualified institutional buyers" (as defined in Rule 144A under the Securities Act) in compliance with Rule 144A under the Securities Act and (b) outside the United States to non-U.S. persons in compliance with Regulation S under the Securities Act, and (if a resident in a member state of the European Economic Area) such person is not a "EEA retail investor" or (if a resident in the United Kingdom) such person is not a "UK retail investor" (as defined in the confidential offering memorandum and consent solicitation statement) or (if resident in Canada) it is a "non-U.S. Canadian qualified offeree" (such persons, "Eligible Holders"). Eligible Holders who are located or resident outside of the United States may be subject to other eligibility criteria. Only Eligible Holders who properly complete and return the eligibility letter (the "Eligibility Letter"), which is available from the Information Agent (as defined below), are authorized to receive and review the confidential offering memorandum and consent solicitation statement and to participate in the Exchange Offers and Consent Solicitations.

Holders who desire to obtain a copy of the Eligibility Letter should contact D.F. King & Co., Inc., the information and exchange agent for the Exchange Offers and Consent Solicitations (the "Information Agent"), at: (800) 967-7635 (banks and brokers) or (646) 602-4897 (all others), at www.dfking.com/kmb-kvue or by email at [email protected]. D.F. King & Co., Inc. will also provide copies of the confidential offering memorandum and consent solicitation statement to Eligible Holders.

The Exchange Offers and Consent Solicitations are being made only pursuant to the confidential offering memorandum and consent solicitation statement. The confidential offering memorandum and consent solicitation statement and other documents relating to the Exchange Offers and Consent Solicitations will be distributed only to Eligible Holders. The Exchange Offers are not being made to holders of Kenvue Notes in any jurisdiction in which the making or acceptance thereof would not be in compliance with the securities, blue sky or other laws of such jurisdiction. The Kimberly-Clark Notes have not been approved or disapproved by any regulatory authority, nor has any such authority passed upon the accuracy or adequacy of the confidential offering memorandum and consent solicitation statement.

None of Kimberly-Clark, Kimberly-Clark's subsidiaries, its and their respective directors or officers, the dealer managers and solicitation agents, the exchange agent, the information agent, any trustee for the Kimberly-Clark Notes or the Kenvue Notes, their respective affiliates, or any other person is making any recommendation as to whether holders should tender their Kenvue Notes in the Exchange Offers or deliver consents to the Proposed Amendments.

This press release does not constitute an offer to sell or purchase, or a solicitation of an offer to sell or purchase, or the solicitation of tenders or consents with respect to, any security in any jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.

The Kimberly-Clark Notes offered in the Exchange Offers have not been registered under the Securities Act or any state securities laws. Therefore, the Kimberly-Clark Notes may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and any applicable state securities laws.

About Kimberly-Clark
Kimberly-Clark (NASDAQ: KMB) and its trusted brands are an indispensable part of life for people in more than 175 countries and territories. Our portfolio of brands, including Huggies, Kleenex, Scott, Kotex, Cottonelle, Poise, Depend, Pull-Ups, Goodnites, Intimus, Plenitud, Sweety, Softex, Viva and WypAll, hold No. 1 or No. 2 share positions in approximately 70 countries. Our company's purpose is to deliver Better Care for a Better World. We are committed to using sustainable practices designed to support a healthy planet, build strong communities, and enable our business to thrive for decades to come.

Forward Looking Statements
Certain statements contained in this press release, including the expected timing of completion of the Acquisition and the Exchange Offers and receipt of Requisite Consents in the Consent Solicitations, constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended, and are qualified by the inherent risks and uncertainties surrounding future expectations generally. There can be no assurance that these future events will occur as anticipated or that our results will be as estimated. Actual results could differ materially from those currently anticipated due to a number of risks and uncertainties, many of which are beyond our control. Forward-looking statements are based upon the expectations and beliefs of the management of Kimberly-Clark as of the date they were made and speak only as of the date they were made. We undertake no obligation to publicly update any forward-looking statements. Some of these forward-looking statements can be identified by words like "anticipate," "approximately," "believe," "continue," "could," "estimate," "expect," "forecast," "intend," "may," "outlook," "plan," "possible," "potential," "predict," "project," "seek," "should," "target," "will" or "would," the negative of these words, other terms of similar meaning or the use of future dates.

The assumptions used as a basis for the forward-looking statements include many estimates. Many factors outside our control, including risks and uncertainties around the Acquisition, could affect the realization of these estimates. Additional information and factors concerning these risks, uncertainties and assumptions can be found in Kimberly-Clark's filings with the U.S. Securities and Exchange Commission ("SEC"), including the risk factors discussed in Kimberly-Clark's most recent Annual Report on Form 10-K, as updated by its Quarterly Reports on Form 10-Q and future filings with the SEC. Forward-looking statements included herein are made only as of the date hereof and Kimberly-Clark undertakes no obligation to update any forward-looking statements, or any other information in this press release, as a result of new information, future developments or otherwise, or to correct any inaccuracies or omissions in them which become apparent. All forward-looking statements in this press release are qualified in their entirety by this cautionary statement.

[KMB-F] [KMB-C]

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SOURCE Kimberly-Clark Corporation

Kimberly-Clark (KMB.O) has offered concessions to address EU antitrust concerns about its $40 billion ​bid for Tylenol maker Kenvue (KVUE.N), a filing ‌on the European Commission website showed on Wednesday.

The European Commission, which acts as the EU competition ​enforcer, did not provide details of ​the remedies in line with its policy. ⁠It extended its deadline for a decision ​to October 13 from September 29.

It is ​expected to seek feedback from rivals and customers before deciding whether to accept the concessions, demand more or ​open a full-scale four-month long investigation.

The ​maker of Kleenex tissues and Huggies diapers is ready to ‌sell ⁠assets to address EU competition concerns that will likely help it secure approval at the end of regulators' preliminary review, people familiar ​with the ​matter told ⁠Reuters last week.

Kenvue's portfolio of brands include Listerine mouthwash and skincare ​brands Aveeno and Neutrogena.

Australian competition authorities ​cleared ⁠the deal earlier this month subject to Kimberly-Clark divesting Kenvue's Carefree and Stayfree period care ⁠brands ​in the country. The U.S. ​company secured conditional approval in South Africa last month.

Key Takeaways KMB expects about $150 million of gross input-cost headwinds in the second half.KMB plans low-single-digit pricing actions, primarily in North America, to help cover inflation.KMB is pairing pricing with record productivity and supplier negotiations to manage rising costs. Kimberly-Clark Corporation (KMB - Free Report) is taking targeted pricing actions alongside a broader set of measures to manage rising input costs. Looking ahead, management estimates gross input cost headwinds of approximately $150 million for the second half of the year. These input-cost pressures are now fully incorporated into the company’s outlook. This follows approximately $50 million of inflationary headwinds in the second quarter, primarily related to higher oil-linked input costs and some impacts from the L.A. distribution center.

The company plans to take pricing actions to help cover inflation in the second half of the year. Management said that the magnitude of these pricing actions is expected to be in the low single digits, primarily in North America, while pricing actions globally will vary by geography. The planned pricing adjustments are intended to help cover inflationary pressures in the second half, with the company emphasizing targeted actions and maintaining consumer value. The pricing actions form part of the company’s response to inflation and higher input costs.

Kimberly-Clark’s pricing actions are already in the marketplace and form part of its effort to maintain PNOC discipline over time. The company continues to follow a principle of keeping pricing net of cost neutral over time. At the same time, it is relying on a broad set of measures rather than revenue growth management alone. Alongside pricing actions, the company is delivering its highest level of productivity to date and actively managing negotiations and contracts with vendors and suppliers. Management is using these multiple levers to address cost pressures rather than relying solely on revenue growth management.

Overall, Kimberly-Clark’s broader cost-management approach is intended to mitigate the impact of higher input costs and inflation. The company also emphasized maintaining a strong value proposition for consumers while taking pricing and productivity actions to manage inflation.

The Zacks Rundown for KMBKMB stock has lost 4.4% in the past three months compared with the industry’s decline of 0.7%.

Image Source: Zacks Investment Research

From a valuation standpoint, KMB trades at a forward price-to-earnings ratio of 13.18, lower than the industry’s average of 18.35. KMB currently carries Zacks Rank #3 (Hold).

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for KMB’s current fiscal-year earnings implies a year-over-year decline of nearly 2%, and the same for next fiscal year earnings implies growth of 2.2%.

Image Source: Zacks Investment Research

Stocks to ConsiderSome better-ranked stocks have been discussed below:

Koninklijke Ahold Delhaize N.V. (ADRNY - Free Report) operates retail food stores and e-commerce in the Netherlands, the United States, and internationally. ADRNY currently carries a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for ADRNY's current fiscal-year sales and earnings implies growth of 3.9% and 4.3%, respectively, from the year-ago actuals. ADRNY reported a trailing four-quarter average earnings surprise of 5.4%.

Purple Innovation, Inc. (PRPL - Free Report) designs, manufactures, and sells sleep and other products in the United States and internationally. PRPL currently carries a Zacks Rank #2.

The Zacks Consensus Estimate for PRPL's current fiscal-year sales and earnings implies growth of 0.4% and 20.8%, respectively, from the year-ago actuals. PRPL delivered a trailing four-quarter earnings surprise of 21.3%, on average.

Henkel AG & Co. (HENKY - Free Report) engages in the adhesive technologies and consumer brands businesses in Europe, India, the Middle East, Africa, North America, Latin America and the Asia Pacific. At present, HENKY carries a Zacks Rank of 2.

The Zacks Consensus Estimate for HENKY’s current fiscal-year sales and earnings suggests growth of 4.6% and 6.6%, respectively, from the year-ago reported figures.

Kimberly-Clark just raised its dividend for the 54th straight year while simultaneously chasing a nearly $50 billion acquisition, and income investors are now weighing whether a deal of that size can coexist with a payout that costs over $1.6 billion…

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Kimberly-Clark (NASDAQ:KMB | KMB Price Prediction) is asking income investors to hold two ideas at once. The company just extended its dividend increase streak to 54 consecutive years with the Q2 2026 declaration, and it is simultaneously working to close a $48.7 billion acquisition of Kenvue (NYSE:KVUE) by the end of 2026. Retirees who own this stock for the check want to know whether one survives the other.

What the Record Actually Shows The dividend file supports a long, unbroken pattern of annual increases in the quarterly rate. Recent quarters have paid $1.28 per share, up from $1.26 in late 2025 and $1.22 in 2024, with an annualized forward dividend of $5.12 and the next payment scheduled for October 2, 2026. Importantly, the board raised the payout again this year with the Kenvue deal already pending. A board worried about covering its dividend does not typically raise it. Fifty-plus-year streaks are a rare club (we ranked ten of them by valuation in a free Dividend Kings report).

Kenvue Deal Math Large acquisitions consume cash and frequently add debt, and debt service competes with the dividend for the same free cash flow. Kimberly-Clark enters this transition with $956 million in cash and total debt of roughly $6.52 billion as of June 30, 2026. Full-year 2025 operating cash flow was $2.777 billion against $1.138 billion of capex and $1.66 billion of dividends. That coverage is real, but it is not enormous, and it is before Kenvue-related financing lands on the balance sheet.

CEO Mike Hsu framed the transaction as “a powerful next step in our transformation” and a “unique, generational value creation opportunity.” On the Q2 call, management said it has roughly 50 teams and 600 people working on synergy planning, and told analysts:

“We remain very confident in the total number of synergies.”

Still, the call gave no specific update on leverage, financing structure, free cash flow, or the timing of the next dividend increase.

Flip Side for Income Holders Kimberly-Clark sells Huggies, Kleenex, Kotex and Scott, categories that grind through recessions. Q2 2026 adjusted EPS of $2.12 beat the $2.01 estimate and adjusted gross margin expanded 190 bps to 38.8%. The stock, however, is down 20.36% over the past year to $98.15, pushing the yield near 5.16%. That yield reflects the market pricing in real risk.

What to Watch Three items will tell the story: pro forma leverage after Kenvue closes, whether free cash flow continues to cover the roughly $1.66 billion annual dividend outlay, and whether the next scheduled raise arrives on its usual January cadence. If those three line up, the streak keeps going. If any slips, income holders will know the deal changed the math.

Contact [email protected] for any questions or corrections.

Key Takeaways Kenvue secured shareholder approval and U.S. antitrust clearance for its planned Q4 2026 deal.Kenvue's Q2 sales rose 3%, but EPS missed estimates and adjusted gross margin fell 70 basis points.Kenvue faces Self Care weakness, $8.5B debt, restructuring costs and ongoing litigation risks. Kenvue Inc. (KVUE - Free Report) is moving closer to its planned combination with Kimberly-Clark Corporation (KMB - Free Report) , with shareholder approvals secured and the U.S. antitrust waiting period expired. The cash-and-stock transaction is expected to close in the fourth quarter of 2026, subject to remaining foreign regulatory approvals and customary conditions.

Kenvue shareholders are expected to receive 0.14625 Kimberly-Clark shares plus $3.50 in cash for each Kenvue share. They are expected to own about 46% of the combined company on a fully diluted basis after closing.

Kimberly-Clark has already announced a post-closing organizational structure that would become effective once the acquisition is completed. The buyer, which describes itself as a global personal care leader, is preparing for integration even as the transaction still depends on outstanding approvals.

Those remaining conditions matter because Kenvue is not providing forward-looking financial guidance while the deal is pending. Expected transaction benefits may not be realized or may take longer than expected, while the pending transaction could also disrupt the business.

Recent results show why execution remains important. Second-quarter 2026 net sales rose 3% to $3,955 million and organic sales increased 1.6%, but adjusted earnings of 31 cents per share fell short of the Zacks Consensus Estimate of 32 cents. Adjusted gross margin fell 70 basis points to 60.2% as inflation, tariffs and unfavorable transactional foreign exchange outweighed pricing and supply-chain productivity benefits.

Self Care remains a pressure point. First-half organic sales in the segment declined 0.9% as volumes fell 2.3%, reflecting lower illness incidence in pediatric pain and cough-and-cold categories. Skin Health and Beauty provided a stronger offset, with first-half organic sales up 4.4% and segment adjusted operating income rising 46.9% to $354 million.

Competition across these categories remains broad. The Procter & Gamble Company (PG - Free Report) operates Beauty, Health Care and Grooming businesses, including skin and personal care and oral care, which overlap with several Kenvue markets. PG's portfolio breadth makes it a relevant competitive reference point for Kenvue's brand-led categories.

The balance sheet adds another layer of risk. Kenvue had $8.5 billion of total debt and $1.1 billion of cash as of June 28, 2026. First-half operating cash flow improved 12.2% to $1.2 billion and free cash flow reached $1 billion, but the 2026 restructuring program is expected to carry approximately $250 million of pre-tax charges before delivering approximately $200 million of annualized pre-tax gross cost savings upon completion.

Legal and macro pressures have not disappeared. The Second Circuit vacated the prior acetaminophen judgment in July 2026 and remanded the litigation for further proceedings. Kenvue also remains responsible for certain talc-related liabilities outside the United States and Canada, while annualized gross tariff exposure was estimated at approximately $80 million.

Bottom line, major shareholder and U.S. antitrust milestones are complete, but the expected fourth-quarter closing still carries regulatory, operational and financial risk. Weak Self Care volumes, margin pressure, debt, restructuring execution and litigation keep the near-term picture balanced despite stronger cash generation and improving Skin Health and Beauty trends.

Image Source: Zacks Investment Research

Kenvue currently carries a Zacks Rank #3 (Hold), a Value Score of C, a Growth Score of C, a Momentum Score of D and a VGM Score of D. Within the Style Score framework, A and B grades are more favorable than C and D grades, while the Zacks Rank remains the first screen for near-term earnings-estimate trends. Kenvue's C and D scores therefore do not add a strong style-based tailwind to its #3 Rank.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Advisors Capital Management LLC bought a new stake in shares of Kimberly-Clark Corporation (NASDAQ:KMB – Free Report) in the second quarter, according to its most recent Form 13F filing with the SEC. The fund bought 247,826 shares of the company’s stock, valued at approximately $27,204,000. Advisors Capital Management LLC owned 0.07% of Kimberly-Clark as of its most recent SEC filing.

Several other large investors also recently made changes to their positions in the company. Vanguard Group Inc. lifted its position in Kimberly-Clark by 0.8% in the fourth quarter. Vanguard Group Inc. now owns 40,846,734 shares of the company’s stock worth $4,121,027,000 after purchasing an additional 315,981 shares during the period. BlackRock Inc. acquired a new position in shares of Kimberly-Clark during the 2nd quarter valued at $3,547,915,000. State Street Corp raised its stake in shares of Kimberly-Clark by 1.4% in the 4th quarter. State Street Corp now owns 21,125,118 shares of the company’s stock worth $2,157,746,000 after buying an additional 294,228 shares in the last quarter. Charles Schwab Investment Management Inc. raised its stake in shares of Kimberly-Clark by 2.6% in the 4th quarter. Charles Schwab Investment Management Inc. now owns 11,917,154 shares of the company’s stock worth $1,202,322,000 after buying an additional 299,382 shares in the last quarter. Finally, Geode Capital Management LLC lifted its holdings in shares of Kimberly-Clark by 0.8% in the fourth quarter. Geode Capital Management LLC now owns 8,322,198 shares of the company’s stock valued at $836,216,000 after buying an additional 65,619 shares during the period. Institutional investors and hedge funds own 76.29% of the company’s stock.

Analysts Set New Price Targets KMB has been the topic of several research reports. Barclays boosted their price target on shares of Kimberly-Clark from $101.00 to $115.00 and gave the stock an “equal weight” rating in a research report on Tuesday, July 21st. Weiss Ratings upgraded shares of Kimberly-Clark from a “hold (c-)” rating to a “hold (c)” rating in a research report on Tuesday, July 28th. TD Cowen lifted their price objective on shares of Kimberly-Clark from $96.00 to $104.00 and gave the stock a “hold” rating in a research note on Wednesday, August 5th. Piper Sandler reiterated an “overweight” rating on shares of Kimberly-Clark in a report on Wednesday. Finally, UBS Group raised their target price on shares of Kimberly-Clark from $115.00 to $116.00 and gave the stock a “neutral” rating in a report on Wednesday, August 5th. One research analyst has rated the stock with a Strong Buy rating, four have given a Buy rating, eleven have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of “Hold” and a consensus target price of $117.93.

View Our Latest Analysis on KMB Kimberly-Clark Stock Down 1.1% KMB stock opened at $108.69 on Friday. The company has a debt-to-equity ratio of 3.45, a current ratio of 0.91 and a quick ratio of 0.69. The firm has a market capitalization of $36.15 billion, a P/E ratio of 18.48, a P/E/G ratio of 5.23 and a beta of 0.26. Kimberly-Clark Corporation has a 52-week low of $92.42 and a 52-week high of $134.38. The company’s 50 day simple moving average is $108.75 and its 200-day simple moving average is $103.39.

Kimberly-Clark (NASDAQ:KMB – Get Free Report) last posted its quarterly earnings data on Tuesday, August 4th. The company reported $1.80 EPS for the quarter, missing analysts’ consensus estimates of $2.01 by ($0.21). Kimberly-Clark had a return on equity of 143.92% and a net margin of 11.79%.The firm had revenue of $4.19 billion during the quarter, compared to analyst estimates of $4.22 billion. During the same period in the prior year, the business posted $1.92 EPS. The company’s revenue for the quarter was up .6% on a year-over-year basis. As a group, equities research analysts anticipate that Kimberly-Clark Corporation will post 7.43 EPS for the current year.

Kimberly-Clark Announces Dividend The firm also recently announced a quarterly dividend, which will be paid on Friday, October 2nd. Stockholders of record on Friday, September 4th will be given a $1.28 dividend. This represents a $5.12 annualized dividend and a dividend yield of 4.7%. The ex-dividend date of this dividend is Friday, September 4th. Kimberly-Clark’s dividend payout ratio (DPR) is 87.07%.

Kimberly-Clark Profile (Free Report)

Kimberly-Clark Corporation is a U.S.-based multinational manufacturer of personal care and consumer tissue products. The company develops, produces and markets a range of consumer brands and professional products, including facial and bathroom tissues, disposable diapers and training pants, feminine care, incontinence products and workplace hygiene solutions. Known for consumer-facing names such as Kleenex, Huggies, Kotex, Cottonelle and Scott, as well as professional offerings under Kimberly-Clark Professional and KleenGuard, the company supplies goods to retail, healthcare and institutional customers.

Founded in 1872 in Neenah, Wisconsin, Kimberly-Clark has expanded from its 19th-century paper-making roots into a global household and workplace products company.

See Also Five stocks we like better than Kimberly-Clark 3 Energy Stocks Raising Dividends as the Sector Surges 5 Reasons the S&P 500 Could Keep Rallying Through Year-End Walmart’s Post-Earnings Drop Could Be a Buying Opportunity The Trade Desk’s Earnings Miss Raises a Bigger Question About Its AI Future Want to see what other hedge funds are holding KMB? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Kimberly-Clark Corporation (NASDAQ:KMB – Free Report).

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Key Takeaways KMB trades below key market and industry valuation benchmarks, strengthening its value case.Volume-plus-mix gains and productivity helped KMB expand margins despite slower category growth.China disruption, consumer pressure and a reduced 2026 outlook weigh on the near-term recovery.
Kimberly-Clark Corporation (KMB - Free Report) offers investors a valuation-versus-execution trade-off. The stock trades below key historical and market benchmarks while the company continues to post volume-and-mix gains and margin improvement. 

That discount is balanced by slower category growth, consumer pressure and disruption in China. The current setup supports patience rather than a clear-cut buying case.

KMB's Valuation Discount Strengthens the Bull CaseKMB trades at 14.75X forward 12-month earnings, below 18.28X for the industry, 16.81X for the Zacks Consumer Staples sector and 20.69X for the S&P 500. Its multiple is also below the one-year median of 14.63X, though above the one-year low of 12.52X.

Image Source: Zacks Investment Research

The discount gives investors a lower entry valuation relative to those benchmarks, but it does not erase execution risk. Consumer-staples peers Colgate-Palmolive Company (CL - Free Report) and Church & Dwight Co., Inc. (CHD - Free Report) provide useful comparison points for investors weighing KMB's valuation, growth profile and execution risks.

Kimberly-Clark's Volume-Mix Engine Is HoldingKimberly-Clark delivered its 10th consecutive quarter of positive volume-plus-mix performance. In the first half of 2026, organic sales rose 1.2%, supported by 1.3% volume growth and a 0.4% mix benefit, partly offset by a 0.5% decline in net pricing.

North America has generated volume-plus-mix-led growth in eight of the past 10 quarters. Trailing 12-month share gains covered 70% of its North American sales base, giving the company a demand foundation as category growth moderates.

KMB's Productivity Is Protecting MarginsGross productivity reached 6.4% in the second quarter of 2026. Adjusted gross margin expanded 190 basis points year over year to 38.8%.

Adjusted operating profit increased 6.2% to $757 million as productivity savings, one-time tariff refunds and favorable currency effects outweighed other pressures. That cost discipline is important because Kimberly-Clark continues to invest in product trial, brand support and supply-chain initiatives.

KMB's EPS Picture Shows Growth, but Estimates Stay SoftKimberly-Clark reported second-quarter 2026 adjusted earnings from continuing operations of $1.80 per share, up 10.4% year over year, but below the Zacks Consensus Estimate of $2.00. Adjusted earnings attributable to Kimberly-Clark were $2.12 per share, also up 10.4%, helped by higher adjusted operating profit and income from discontinued operations.

For 2026, Kimberly-Clark expects adjusted EPS from continuing operations to grow at a high-single-digit rate on a constant-currency basis, including an approximately 30% increase in income from equity companies. However, adjusted EPS attributable to Kimberly-Clark is expected to decline at a low-single-digit rate, reflecting a more complicated earnings mix following portfolio changes.

China and Consumer Pressure Cloud KMB's OutlookThe China diaper disruption reduced consolidated organic sales growth by about 50 basis points and created an approximately 440-basis-point headwind to International Personal Care operating profit. Management expects the issue to continue affecting sales and profits in the near term. 

North American weighted category growth slowed to 1.9% from 3.7% sequentially, while lower-income consumers remain pressured.

KMB's Financial Position Supports Its TransformationKimberly-Clark ended the quarter with $956 million in cash and cash equivalents and $6.474 billion in long-term debt. Cash provided by operations totaled $1.653 billion in the first six months of 2026.

Capital spending reached $776 million during the period, while dividends returned $843 million to shareholders. The cash generation gives Kimberly-Clark resources to fund investment while it advances portfolio and operational changes.

KMB's Ranking Picture Remains IncompleteThe bottom line is balanced. KMB's valuation discount, sustained volume-and-mix momentum and productivity gains support the case for holding the shares, but China disruption, softer category growth and a reduced 2026 outlook limit the near-term argument for aggressive buying.

KMB currently carries a Zacks Rank #3 (Hold), along with a Value Score of C, a Growth Score of C, a Momentum Score of F and a VGM Score of C. Rank #3 can support holding an existing position, while the middling Value, Growth and VGM Scores and weak Momentum Score do not add a strong style-based buying signal. Investors may prefer to wait for clearer evidence of sales normalization and steadier category trends. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Posted by Defense World Staff on Aug 6th, 2026

Empowered Funds LLC trimmed its position in shares of Kimberly-Clark Corporation (NASDAQ:KMB – Free Report) by 58.6% in the 1st quarter, according to the company in its most recent disclosure with the SEC. The fund owned 26,276 shares of the company’s stock after selling 37,181 shares during the quarter. Empowered Funds LLC’s holdings in Kimberly-Clark were worth $2,535,000 at the end of the most recent reporting period.

A number of other institutional investors have also modified their holdings of KMB. Greatmark Investment Partners Inc. boosted its stake in Kimberly-Clark by 2.9% in the fourth quarter. Greatmark Investment Partners Inc. now owns 3,533 shares of the company’s stock valued at $356,000 after acquiring an additional 100 shares in the last quarter. Oregon Public Employees Retirement Fund grew its holdings in Kimberly-Clark by 0.3% in the fourth quarter. Oregon Public Employees Retirement Fund now owns 37,999 shares of the company’s stock worth $3,834,000 after purchasing an additional 100 shares during the last quarter. New Mexico Educational Retirement Board increased its position in shares of Kimberly-Clark by 0.7% during the fourth quarter. New Mexico Educational Retirement Board now owns 15,093 shares of the company’s stock worth $1,523,000 after purchasing an additional 100 shares in the last quarter. AdvisorNet Financial Inc lifted its holdings in shares of Kimberly-Clark by 18.3% during the 1st quarter. AdvisorNet Financial Inc now owns 665 shares of the company’s stock valued at $64,000 after purchasing an additional 103 shares during the last quarter. Finally, Core Wealth Partners LLC lifted its holdings in shares of Kimberly-Clark by 2.6% during the 4th quarter. Core Wealth Partners LLC now owns 4,352 shares of the company’s stock valued at $439,000 after purchasing an additional 112 shares during the last quarter. 76.29% of the stock is currently owned by institutional investors.

Kimberly-Clark Price Performance Shares of KMB opened at $112.37 on Thursday. The business’s 50-day moving average is $106.43 and its two-hundred day moving average is $102.73. The company has a market capitalization of $37.30 billion, a P/E ratio of 19.11, a P/E/G ratio of 5.02 and a beta of 0.26. The company has a debt-to-equity ratio of 3.45, a quick ratio of 0.55 and a current ratio of 0.91. Kimberly-Clark Corporation has a fifty-two week low of $92.42 and a fifty-two week high of $137.46.

Kimberly-Clark (NASDAQ:KMB – Get Free Report) last issued its quarterly earnings data on Tuesday, August 4th. The company reported $1.80 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.01 by ($0.21). Kimberly-Clark had a net margin of 11.79% and a return on equity of 143.92%. The company had revenue of $4.19 billion during the quarter, compared to analyst estimates of $4.22 billion. During the same period last year, the firm earned $1.92 EPS. The business’s quarterly revenue was up .6% compared to the same quarter last year. Research analysts predict that Kimberly-Clark Corporation will post 7.45 earnings per share for the current year.

Kimberly-Clark Announces Dividend The business also recently declared a quarterly dividend, which will be paid on Friday, October 2nd. Shareholders of record on Friday, September 4th will be issued a $1.28 dividend. The ex-dividend date of this dividend is Friday, September 4th. This represents a $5.12 dividend on an annualized basis and a yield of 4.6%. Kimberly-Clark’s payout ratio is presently 87.07%.

Wall Street Analysts Forecast Growth KMB has been the topic of several research analyst reports. Wells Fargo & Company boosted their target price on Kimberly-Clark from $100.00 to $110.00 and gave the stock an “equal weight” rating in a research note on Wednesday, July 8th. UBS Group increased their price target on Kimberly-Clark from $115.00 to $116.00 and gave the company a “neutral” rating in a research note on Wednesday. Bank of America dropped their price target on Kimberly-Clark from $130.00 to $120.00 and set a “buy” rating on the stock in a research note on Friday, April 10th. Barclays increased their price objective on shares of Kimberly-Clark from $101.00 to $115.00 and gave the company an “equal weight” rating in a research report on Tuesday, July 21st. Finally, Piper Sandler boosted their target price on shares of Kimberly-Clark from $115.00 to $121.00 and gave the stock an “overweight” rating in a research report on Wednesday, June 17th. Four research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the stock has an average rating of “Hold” and a consensus target price of $117.93.

View Our Latest Research Report on Kimberly-Clark

Key Headlines Impacting Kimberly-Clark Here are the key news stories impacting Kimberly-Clark this week:

Positive Sentiment: Second-quarter adjusted operating profit rose 6.2% year over year, supported by productivity savings, volume-plus-mix gains and gross-margin expansion. Adjusted EPS was $1.80, although results remained below analysts’ expectations. Kimberly-Clark second-quarter results Positive Sentiment: Kimberly-Clark declared a quarterly dividend of $1.28 per share, reinforcing its income appeal with an indicated annualized yield of approximately 4.6%. Kimberly-Clark dividend announcement Positive Sentiment: A plant-based fiber initiative could eventually reduce reliance on traditional wood fibers in paper towels, offering potential long-term manufacturing and sustainability benefits. Kimberly-Clark plant-based fiber initiative Neutral Sentiment: Management said the pending Kenvue acquisition remains on track to close by year-end, but investors will continue to assess the transaction’s execution risks and effect on leverage. Kimberly-Clark 2026 second-quarter presentation Negative Sentiment: Revenue of roughly $4.19 billion increased only 0.6% year over year and missed the $4.22 billion consensus estimate. Reported profit also declined, while adjusted EPS of $1.80 fell short of the $2.01 analyst consensus cited in the company coverage. Kimberly-Clark second-quarter sales report Negative Sentiment: Kimberly-Clark lowered its 2026 sales and profit outlook, saying organic sales growth should trail weighted-average category growth by about 100 basis points. False social-media allegations regarding Huggies diaper quality significantly disrupted China sales and remain the main near-term overhang. Reuters report on Kimberly-Clark guidance Negative Sentiment: TD Cowen analyst Robert Moskow maintained a Hold rating despite raising his price target to $104, citing near-term volatility and operational challenges. TD Cowen Kimberly-Clark rating Kimberly-Clark Profile (Free Report)

Kimberly-Clark Corporation is a U.S.-based multinational manufacturer of personal care and consumer tissue products. The company develops, produces and markets a range of consumer brands and professional products, including facial and bathroom tissues, disposable diapers and training pants, feminine care, incontinence products and workplace hygiene solutions. Known for consumer-facing names such as Kleenex, Huggies, Kotex, Cottonelle and Scott, as well as professional offerings under Kimberly-Clark Professional and KleenGuard, the company supplies goods to retail, healthcare and institutional customers.

Founded in 1872 in Neenah, Wisconsin, Kimberly-Clark has expanded from its 19th-century paper-making roots into a global household and workplace products company.

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Kimberly-Clark Corporation (KMB) Q2 2026 Earnings Call August 4, 2026 8:00 AM EDT

Company Participants

Christopher Jakubik - Investor Relations Contact
Michael Hsu - Chairman & CEO
Russell Torres - President & COO
Nelson Urdaneta - Senior VP, CFO & Interim Principal Accounting Officer,

Conference Call Participants

Nik Modi - RBC Capital Markets, Research Division
Christopher Carey - Wells Fargo Securities, LLC, Research Division
Bonnie Herzog - Goldman Sachs Group, Inc., Research Division
Michael Lavery - Piper Sandler & Co., Research Division
Stephen Robert Powers - Deutsche Bank AG, Research Division
Lauren Lieberman - Barclays Bank PLC, Research Division
Robert Moskow - TD Cowen, Research Division
Peter Grom - UBS Investment Bank, Research Division
Javier Escalante Manzo - Evercore ISI Institutional Equities, Research Division

Presentation

Operator

Good morning, and welcome to the Kimberly-Clark Second Quarter 2026 Earnings Call. [Operator Instructions]

I will now hand the floor over to Chris Jakubik, Vice President, Investor Relations. Please go ahead.

Christopher Jakubik
Investor Relations Contact

Good morning, everyone. This is Chris Jakubik, Head of Investor Relations at Kimberly-Clark, and thank you for joining us.

I would like to remind everyone that during our comments today, we will make some forward-looking statements that are based on how we see things today. Actual results may differ due to risks and uncertainties, and these are discussed in our earnings release and our filings with the SEC. We will also discuss some non-GAAP financial measures during these remarks. These non-GAAP financial measures should not be considered a replacement for and should be read together with GAAP results. And you can find the GAAP and the reconciliations within our earnings release and the supplemental materials posted at investor.kimberly-clark.com.

With that, I'll turn it over to Mike for a few opening comments.

Michael Hsu
Chairman & CEO

Thank you, Chris, and thank you all for joining us today. As I mentioned

A package of Huggies brand diapers, made by Kimberly-Clark, is shown in Boca Raton, Florida October 22, 2013. REUTERS/Joe Skipper/ File Photo Purchase Licensing Rights, opens new tab

Aug 4 (Reuters) - Kimberly-Clark (KMB.O), opens new tab cut its annual sales and profit forecasts on Tuesday, citing a significant hit to second-quarter sales in China that stemmed from what it said were false viral claims about the ​quality of some of its diaper brands.

The Kleenex maker said claims circulating on Chinese social media ‌that its Huggies diapers contained formamide, a substance banned in multiple countries, weighed on demand despite independent testing by a government-certified third party confirming their quality and safety.

Keep up with the latest medical breakthroughs and healthcare trends with the Reuters Health Rounds newsletter. Sign up here.

Beijing-based media outlet Economic Times Daily reported in June that Chinese brands Babycare Bibabebe and Kimberly-Clark's ​Huggies tested positive for formamide, according to the Hong Kong Free Press. The toxic substance can irritate ​the skin, eyes and breathing if inhaled.

The allegations emerged just ahead of China's annual "618" ⁠shopping festival, one of the country's biggest e-commerce events. Kimberly-Clark said the disruption would continue to pressure sales ​and earnings in the near term.

On June 22, China's market regulator said it had established a joint investigation team to ​look into "formamide issues in infant diapers", without naming any company or brand. Authorities have not provided an update on the status of the probe.

"We're disappointed but remain confident in the underlying quality of our global innovation and commercial plans," CEO Mike Hsu said in ​a statement.

The unexpected challenges in a key international market overshadowed cost-saving efforts, resetting expectations for investors who had ​been guided for stronger growth.

Kimberly-Clark, on track to complete its roughly $40 billion acquisition of Kenvue (KVUE.N), opens new tab by the year-end, now expects 2026 ‌organic sales ⁠growth to trail the weighted average growth of its categories and markets by about 100 basis points. Those categories grew about 2% over the last 12 months.

It had previously forecast growth in line with or above the then weighted category average of about 2.5%.

The company expects annual adjusted earnings per share to grow at a high-single-digit rate ​on a constant-currency basis, compared ​with its earlier forecast ⁠for double-digit growth.

Kimberly-Clark labeled the disruption a "one-time external impact". It will temper organic growth in International Personal Care segment this year by three to four percentage points and ​hold back operating profit growth by 10 to 12 percentage points, COO Russ Torres ​said, "as we invest ⁠aggressively to defend our franchise".

Last month, Kimberly-Clark finalized the sale of a 51% stake in its international tissue business to Suzano (SUZB3.SA), opens new tab, creating the $3.4 billion Arbex joint venture to compete with rivals Procter & Gamble (PG.N), opens new tab and Essity.

Net sales rose 0.6% to $4.19 billion for ⁠the three ​months ended June 30. Analysts on average expected $4.22 billion, according to ​data compiled by LSEG.

Adjusted operating profit increased 6.2% to $757 million, helped by tariff refunds, productivity savings and favorable currency effects.

Shares of the company were ​flat in premarket trading.

Reporting by Neil J Kanatt in Bengaluru and Alexander Marrow in London; Editing by Joyjeet Das

Our Standards: The Thomson Reuters Trust Principles., opens new tab

, /PRNewswire/ -- The board of directors of Kimberly-Clark Corporation (NASDAQ: KMB) has declared a regular quarterly dividend of $1.28 per share. The dividend is payable in cash on October 2, 2026, to stockholders of record at the close of business on September 4, 2026.

Kimberly-Clark has paid a dividend for 92 consecutive years and has increased its dividend for 54 consecutive years.

About Kimberly-Clark

Kimberly-Clark (NASDAQ: KMB) and its trusted brands are an indispensable part of life for people in more than 175 countries and territories. Our portfolio of brands, including Huggies, Kleenex, Scott, Kotex, Cottonelle, Poise, Depend, Pull-Ups, Goodnites, Intimus, Plenitud, Sweety, Softex, Viva and WypAll, hold No. 1 or No. 2 share positions in approximately 70 countries. Our company's purpose is to deliver Better Care for a Better World. We are committed to using sustainable practices designed to support a healthy planet, build strong communities, and enable our business to thrive for decades to come. To keep up with the latest news and learn more about the company's more than 150-year history of innovation, visit the Kimberly-Clark website. 

[KMB-F]

Logo - https://mma.prnewswire.com/media/648588/Kimberly_Clark_v1_Logo.jpg

SOURCE Kimberly-Clark Corporation

Baby boomers heading into retirement face a specific math problem: They need income that grows faster than inflation, drawn from businesses stable enough to survive whatever the next decade throws at them. With the 10-Year Treasury yielding 4.56% as of July 10, 2026 and Core PCE inflation still climbing (index at 130.08 in May 2026, up 0.3% month over month), fixed-rate bonds alone will not preserve purchasing power over a 25-year retirement. Dividend Kings, companies with 50-plus years of consecutive dividend hikes, remain the workhorse solution.

Here are three durable-income names built for the long haul, each with a specific bull case and a risk worth respecting.

Johnson & Johnson (JNJ) Johnson & Johnson (NYSE:JNJ | JNJ Price Prediction) is the healthcare anchor almost every retirement portfolio needs. The company just posted Q1 2026 revenue of $24.06 billion (up 9.9% year over year) and adjusted EPS of $2.70, both ahead of Street expectations, and management raised FY2026 guidance to revenue of $100.3 billion to $101.3 billion and adjusted EPS of $11.45 to $11.65.

The dividend track record is the headline. The board approved a 3.1% dividend increase to $1.34 per share quarterly, marking 64 consecutive years of dividend growth, verified by the payment record showing the Q2 2026 ex-dividend date of May 26, 2026 at $1.34 versus $1.30 the prior quarter. The annualized forward payout of $5.36 gives retirees a concrete income figure to plan around.

Growth is accelerating too. DARZALEX delivered $3.96 billion in the quarter (up 22.5%), TREMFYA grew 68.3%, and CARVYKTI expanded 62.1%. CEO Joaquin Duato called this “a strong start to 2026” delivering on the promise of “a year of accelerated growth and impact.” Shares reflect that momentum: JNJ is up around 52% over the past year and 23.23% year to date through July 22, with a beta of 0.235 that still qualifies as defensive.

Risk/caveat: STELARA biosimilar erosion hit hard, with sales down 59.7% to $656M, and the planned Orthopaedics separation carries execution risk. At a forward P/E near 22, this is no longer a bargain-bin buy.

Kimberly-Clark (KMB) Kimberly-Clark (NASDAQ:KMB) is the consumer-staples version of this trade: Huggies, Kleenex, Scott, Kotex, Cottonelle, Poise and Depend all sit in cabinets that get restocked whether the economy is booming or contracting.

The Q1 2026 print was solid: adjusted EPS of $1.97, which beat the $1.93 estimate, on revenue of $4.16 billion. The company reaffirmed 2026 guidance for organic sales growth of ~2.5% and double-digit adjusted EPS growth on a constant-currency basis, with International Personal Care up 9.1% to $1.51 billion.

The dividend? The Q1 2026 quarterly rose to $1.28 from $1.26 in Q4 2025, extending a streak the data confirms has run every single year from 1999 through 2026. The 4.7% trailing yield is one of the highest available in blue-chip staples.

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Valuation looks reasonable too: forward P/E of 15 versus a trailing 22, with a beta of 0.279. CEO Mike Hsu framed the pending Kenvue acquisition as a “generational value creation opportunity.” For retirees hunting income, this is a Dividend King built to weather cycles.

If maximizing income across a full portfolio is the objective, 24/7 Wall St.’s 10 Dividend Kings research report drills into how these multi-decade compounders fit alongside other steady-payer names.

Risk/caveat: Reported net sales fell 14% year over year due to IFP discontinued operations and the US private label diaper exit, and the consumer tissue restructuring plus Kenvue integration risk are real. As of July 22, shares are down 15.52% over the past year — a reminder that even Kings have off years.

Genuine Parts Company (GPC) Genuine Parts Company (NYSE:GPC) owns NAPA Auto Parts and one of the strongest industrial distribution networks in North America. Q1 2026 delivered adjusted EPS of $1.77, revenue of $6.26B (up 6.8% YoY), and comparable sales up 2.4%. Management reaffirmed FY2026 guidance for sales growth of 3% to 5.5%, adjusted diluted EPS of $7.50 to $8 and free cash flow of $550 million to $700 million.

The dividend streak here is the longest of the three. Data confirms 70 consecutive years of dividend increases announced with Q4 2025, with the annual rate up 3.2% to $4.25 per share. Payment records verify the Q1 2026 quarterly at $1.0625 (up from $1.03 through 2025), annualized forward of $4.25, with the latest payment on July 2, 2026. The 3.53% yield gives income a running start, and the planned tax-free separation into Global Automotive and Global Industrial businesses is targeted for Q1 2027, which could unlock trapped value.

CEO Will Stengel noted the team “delivered first quarter results ahead of expectations” while progressing on the separation.

Risk/caveat: Q4 2025 posted a GAAP net loss of $609.5 million driven by a $742 million pension settlement charge and a $150.5 million First Brands supplier bankruptcy credit loss. Add tariff exposure, separation execution risk, and a Q1 2026 free cash flow deficit of $33.6 million and the near-term picture is choppier than the streak suggests.

The Bottom Line All three names are Dividend Kings in defensive sectors, and all three have raised payouts through recessions, wars, and rate cycles. For baby boomers building an income base to draw from for decades, that consistency is the point. The forward-looking question is whether each company can navigate its current transition (JNJ’s Orthopaedics spin, KMB’s Kenvue integration, and GPC’s separation) without disrupting cash flow to shareholders. History says the odds favor the Kings.

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Contact [email protected] for any questions or corrections.

As of market close on July 7, the S&P 500 (^GSPC 0.42%) and Nasdaq Composite (^IXIC 0.23%) are up 9.6% and 11.1% year to date (YTD), respectively, and hovering around all-time highs. The tech sector -- which makes up 38% of the index -- is largely responsible for the strong gains because it is up 24.5% YTD.

However, some noteworthy value stocks are doing even better than the tech-heavy S&P 500. Kimberly-Clark (KMB 2.75%) is up 13.7% YTD, and that's without even factoring in two $1.28 per share dividend payments. Earlier this year, Kimberly-Clark raised its dividend for the 54th consecutive year, retaining its spot on the list of Dividend Kings, which have at least 50 consecutive years of dividend increases.

Here's why Kimberly-Clark remains a great dividend stock to buy for the second half of the year.

Image source: Getty Images.

1. Kimberly-Clark is recession-resistant Kimberly-Clark has a portfolio of leading household and personal care brands, many of which are paper-based. Its crown jewel is Huggies, which is the No. 2 diaper brand in the world behind Pampers. Other notable brands include Kleenex, Kotex, Scott, and Cottonelle.

Demand for these products tends to be consistent across economic cycles, though Kimberly-Clark's margins have been under pressure due to rising costs and inflationary pressures on consumer spending. In Kimberly-Clark's first-quarter 2026 earnings call, it forecasted $150 million to $170 million in additional costs if oil remained around $100 per barrel. Oil prices have come down significantly since that late April earnings call, but the months when oil was elevated will affect its full-year margins.

However, Kimberly-Clark is implementing productivity initiatives, new pricing with suppliers, and hedging programs to improve margins. Kimberly-Clark's chief financial officer, Nelson Urdaneta, said the following on the Q1 2026 earnings call:

I'd also remind everyone that we've got a solid track record over the last four years of recovering any input cost inflation and actually expanding margins. If you look at 2023 through 2025, we expanded both gross margins and operating profit margins beyond the levels pre-pandemic. So we're confident in our ability to cover all these input costs over time.

Kimberly-Clark isn't immune to consumer spending trends or macroeconomic factors, but it has done a good job adjusting to the new normal of cost inflation.

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2. A major acquisition is right around the corner In November 2025, Kimberly-Clark announced the acquisition of Kenvue (KVUE 1.80%). The consumer health company spun off from Johnson & Johnson in August 2023 and owns many noteworthy brands, including Aveeno, Neutrogena, Tylenol, Listerine, Johnson's, and BAND-AID.

Since then, Kimberly-Clark and Kenvue shareholders have overwhelmingly approved the acquisition, and Kimberly-Clark has moved forward with key organizational and leadership decisions.

The deal will diversify Kimberly-Clark's revenue streams and enhance its resilience in a recession. Kimberly-Clark expects the transaction to close before the end of the year.

3. Kimberly-Clark is dirt cheap You may think that Kimberly-Clark would command a premium valuation, given that its stock price is outpacing the S&P 500 and Nasdaq in 2026. However, Kimberly-Clark fell 23% last year and is down 18.1% over the last decade.

Kimberly-Clark now trades at just 15.2 times analyst consensus 2026 earnings estimates of $7.54 per share. Its 10-year median price-to-earnings ratio is 21.9.

A top high-yield dividend stock to buy now Investors who believe the Kenvue acquisition is the right move are getting a chance to buy Kimberly-Clark at a dirt cheap valuation. Kimberly-Clark expects the combined company to deliver $2.1 billion in annual run rate synergies by the second year following the acquisition, unlocking operating leverage and boosting margins.

In the meantime, investors can count on Kimberly-Clark's high-yield dividend. Although a high yield can sometimes indicate that a dividend is becoming unsustainable, Kimberly-Clark's earnings and free cash flow still exceed its payout.

With an established and recession-resistant portfolio of brands, Kimberly-Clark stands out as an attractive value stock for investors looking for an alternative to high-flying growth stocks. Unlike hyperscaler cloud computing companies, Kimberly-Clark isn't spending a ton of capital expenditures on big ideas that it needs to pay off. Rather, it is a stable stalwart that has rewarded income investors for decades.

Therefore, Kimberly-Clark can continue to outperform the S&P 500 and Nasdaq because its earnings growth expectations are already low. So even decent results would likely be received well by investors. However, Kimberly-Clark isn't without its risks.

If the Kenvue acquisition doesn't go as smoothly as planned or fails to unlock the cost savings Kimberly-Clark hopes for, it could make its dividend less affordable, which could strain its balance sheet. The combined company must also prove it can extract value from a larger portfolio of brands, which comes with a slew of execution challenges from a new leadership team.

Therefore, some investors may want to wait for the dust to settle after the Kenvue acquisition before buying the stock. Investors who don't mind the uncertainty can scoop up shares at an attractive valuation.

Kimberly-Clark (NASDAQ:KMB | KMB Price Prediction) just sent another check to shareholders, and the math is making conservative income investors nervous. The consumer staples giant paid out $1.28 per share on July 2, 2026, marking another quarter in a dividend streak that now stretches more than five decades. The problem? On certain adjusted measures, the payout ratio is hovering near 80%, and free cash flow barely covered the dividend last year. For retirees who depend on this Dividend Aristocrat for income, that’s the kind of data point that triggers a portfolio review.

However, if you dig into the balance sheet, a very different story emerges. Kimberly-Clark is actively deleveraging, equity is rebuilding at a pace not seen in years and operating cash flow just exploded in the most recent quarter. The dividend sits on a wider beam than the trailing payout ratio suggests.

The Payment That Sparked the Debate The Q1 2026 declaration lifted the quarterly rate to $1.28 from $1.26, extending Kimberly-Clark’s growth streak to 53 consecutive years of annual increases. At the current price of $110.06, that puts the trailing dividend yield at 5%, well above the broader market and competitive with investment-grade corporate bonds.

The annualized run rate sits at $5.12 per share for 2026, up from $5.04 in 2025 and $4.88 in 2024. The progression has been remarkably mechanical: small, predictable raises that prioritize the streak over flash.

Why Retirees Are Worried: The Coverage Math The case against Kimberly-Clark starts with one statistic that should make any dividend investor pause. In fiscal 2025, the company generated $1.639 billion in free cash flow against $1.660 billion in dividend payments. That’s a coverage ratio of 0.99x, the first time in a decade that free cash flow has not comfortably covered the distribution.

Historical context makes the deterioration look sharper. From 2016 through 2024, free cash flow coverage typically ran between 1.4x and 1.9x. The driver was capital intensity. Capital expenditures jumped to $1.138 billion in 2025 from $721 million in 2024, consuming 41% of operating cash flow, the highest ratio in the 10-year period.

Q1 2026 looks tighter still when isolated. Free cash flow of $321 million fell short of the $418 million dividend payment. Buybacks also pulled back hard: share repurchases dropped to $141 million in 2025 from $1.0 billion in 2024. Management is clearly prioritizing the dividend, which is exactly what raises the question of whether something has to give.

The Balance Sheet Counter-Argument Here’s where the bear case starts breaking down. While free cash flow tightened, Kimberly-Clark used 2025 to materially strengthen its capital structure.

Shareholder equity rose to $1.502 billion at year-end 2025 from $840 million in 2024, a 79% jump. Total debt fell by $620 million to $7.296 billion. The debt-to-equity ratio improved from 9.42x to 4.86x in a single year. By the end of Q1 2026, equity had climbed further to $1.796 billion while total debt continued to drift down to $7.084 billion.

Retained earnings of $9.611 billion provide a substantial accumulated cushion. That’s the profile of a company simultaneously paying down debt, raising distributions, and reinvesting in capacity.

Q1 2026 Cash Flow Tells a Different Story The single most underappreciated data point in this debate is the operating cash flow swing in the latest quarter. Q1 2026 operating cash flow came in at $745 million, up 128% year over year. That’s the kind of working capital release that doesn’t happen at companies on the verge of cash distress.

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Earnings followed the same path. Adjusted EPS of $1.97 beat the $1.93 consensus, the fourth consecutive quarterly beat. Revenue of $4.163 billion topped expectations, and net income jumped 17% year over year to $665 million. The International Personal Care segment posted 9% revenue growth with operating profit up 22%.

CEO Mike Hsu framed the quarter directly: “Our first quarter results highlight the strength and resilience of the growth engine we’ve built through Powering Care…[and] we continue to generate meaningful cost savings that reinforce our strong financial foundation and enable us to invest in our exciting future.”

Dividend Scorecard Metric Value Assessment Current Yield 5% Premium income Consecutive Growth Years 53 Dividend Aristocrat tier Payout Ratio (GAAP EPS) ~67% Elevated but workable FCF Coverage (FY 2025) 0.99x Tight Debt-to-Equity 4.86x Improving sharply Beta 0.302 Low volatility Latest Raise $1.26 to $1.28 On schedule Grade: B+

The free cash flow squeeze is real and worth monitoring, but balance sheet repair, the 27-year uninterrupted payment record, and the operating cash flow acceleration in Q1 2026 outweigh the trailing coverage concern. A pure A would require restored FCF coverage above 1.3x.

The Macro Backdrop Favors the Dividend Retirees evaluating Kimberly-Clark aren’t doing so in a vacuum. The savings rate has compressed to 4% in Q1 2026 from 6% in Q1 2024, suggesting income-dependent households are drawing down reserves. Per-capita disposable income has climbed to $68,391, but Social Security receipts of $1.630 trillion now anchor retiree budgets more than ever.

Demand for Kimberly-Clark’s core categories has held up. Spending on the “Other” nondurable goods category, which captures personal care and household products, ran at $1,810.8 billion in May 2026 versus $1,714.6 billion in May 2025. Tissue, diapers, and feminine care are textbook recession-resistant categories, and the BEA data shows consumers continuing to spend on them through a softening savings environment.

The Kenvue Wild Card Looming over everything is the pending $48.7 billion Kenvue (NYSE:KVUE) acquisition, which shareholders have already approved. Integration risk is real, but so is the strategic logic of combining Kimberly-Clark’s distribution muscle with Kenvue’s branded consumer health portfolio. The IFP joint venture with Suzano (NYSE:SUZ), expected to close mid-2026, further reshapes the asset base. Management has guided to organic sales growth of around 3% and double-digit adjusted EPS growth on a constant-currency basis for 2026.

What to Watch Next The stock has come back to life. Shares are up nearly 8% year to date and more than 11% over the past month, recovering from a tough trailing 12 months that saw the stock fall over 15%. The analyst target sits at $114.80, modest upside from current levels, and the consensus skews toward Hold with nine Hold ratings against six Buy or Strong Buy ratings and just one Sell rating.

For retirees, the key signal posts are clear. First, watch full-year free cash flow coverage restore above 1.2x as the elevated capex cycle normalizes. Second, watch the Kenvue integration cadence for evidence that combined cash flow can fund a larger dividend base. Third, keep an eye on the quarterly raise in early 2027. A skipped or token increase would break the rhythm in a way the bond market would notice immediately.

The 80% payout headline is doing more rhetorical work than the underlying numbers justify. A company actively deleveraging, growing equity at double-digit rates, beating earnings four quarters in a row, and operating in categories with documented stable demand is a Dividend Aristocrat navigating a heavy CapEx cycle while keeping the streak intact.

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