Kimberly-Clark Raises Dividend for 54th Straight Year After Kenvue Deal
Kimberly-Clark has raised its dividend for the 54th year in a row, cementing its reputation as a reliable income stock. The company, known for its paper-based consumer goods, also announced strong financial results for 2025 while outlining plans for future growth after a major acquisition.
On 27 January 2026, Kimberly-Clark confirmed its 54th consecutive annual dividend increase. This move came alongside its fourth-quarter and full-year 2025 earnings report, which showed 1.7% organic sales growth and a 3.2% rise in adjusted earnings per share.
The firm recently completed the acquisition of Kenvue, a consumer health business behind brands like Band-Aid and Tylenol. Management expects this deal to deliver $2.1 billion in annual cost savings and revenue synergies within three years.
Looking ahead, Kimberly-Clark forecasts 2% organic sales growth in 2026, with adjusted earnings per share remaining flat. The company's shares currently trade at 13 times forward earnings while offering a 5% dividend yield. Analysts note that earnings and free cash flow comfortably cover dividend payments, suggesting sustainability.
With leading brands in 70 countries, Kimberly-Clark dominates markets for adult diapers and tissue products. The Kenvue purchase expands its portfolio into consumer healthcare, adding well-known names to its existing product lines.
The dividend increase extends Kimberly-Clark's long record of shareholder returns. The Kenvue acquisition is set to boost profitability by 2029, while steady sales growth and cash flow support the high yield. Investors now watch for execution on the integration and delivery of promised synergies.
