Kimberly-Clark (NYSE: KMB) is a high-yielding Dividend King offering an attractive entry point early in 2205. The stock is trading near the low end of a long-term trading range with value relative to historical norms, the consumer staples sector, the broad market, and a high and reliable dividend yield. The demand for this stock may wallow in the year’s first half, but the long-term outlook is bright and likely to improve the demand over time. The company is deep in a turn-around that includes restructuring and divestiture, with margins improving and sustained, with mid-to-high single-digit top-line growth forecasted well into the next decade.
Kimberly-Clark’s dividend is attractive, with the stock off of its 2024 highs. The stock yielded nearly 3.75% in late January, including the 53rd consecutive dividend increase issued with the F2024 results. The company increased the payment by another 3.4%, aligning with the sustainable trend. More importantly, dividend safety is improving due to the improved cash flow. Debt remains elevated but fell significantly in Q4 and should continue declining in 2025.
