You’ve seen the names in your pantry and bathroom—Kleenex, Huggies, Scott, Cottonelle. But for investors, Kimberly-Clark (KMB) isn't just a paper company. It’s a paycheck. Specifically, a paycheck that has arrived every single quarter for 91 years straight.
Honestly, finding that kind of consistency is rare. In a world where tech giants burn through cash and "disruptors" disappear overnight, Kimberly-Clark is basically the boring, reliable grandparent of the stock market. But boring is good when you want to retire.
The kimberly clark stock dividend currently yields around 5.1%. That’s a massive jump from where it sat just a few years ago. If you're looking for passive income in 2026, you've probably noticed that KMB is flashing on a lot of "high yield" screens. But is it a bargain or a trap?
Why the Kimberly Clark Stock Dividend is a "King"
The term "Dividend King" isn't just marketing fluff. It’s a specific title for companies that have increased their annual payout for at least 50 years in a row. As of early 2026, Kimberly-Clark has hit 53 consecutive years of raises.
Think about that. They raised the dividend through the high inflation of the 70s, the 2008 crash, and a global pandemic.
- 91 years of consecutive dividend payments.
- 53 years of annual increases.
- Current Annual Payout: $5.04 per share.
- Yield: Approximately 5.1% (based on recent prices around $99).
The most recent hike happened in January 2025, when the board bumped the quarterly payment to $1.26 per share. It was a 3.3% increase. Not huge, but it keeps the streak alive.
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The Elephant in the Room: Is the Payout Safe?
When a yield hits 5%, people start getting nervous. Usually, for a consumer staple like this, a yield that high means the stock price has taken a beating. And yeah, KMB has been under pressure.
Total debt is often the first thing critics point to. Kimberly-Clark carries more leverage than some of its peers like Procter & Gamble. According to recent filings, their payout ratio—the percentage of earnings paid out as dividends—sits around 70% to 85% depending on whether you're looking at GAAP or adjusted numbers.
That’s high.
But it’s not necessarily a "run for the hills" moment. Consumer staples companies can get away with higher payout ratios because their cash flow is so predictable. People don't stop buying diapers or toilet paper because the economy hit a snag.
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The Kenvue Factor
There's a big move making waves in 2026. Kimberly-Clark recently announced a massive $48.7 billion deal to acquire Kenvue. If that name sounds familiar, it's because it was the consumer health spin-off from Johnson & Johnson (think Tylenol and Band-Aid).
Management is betting that this will jumpstart growth. The problem? It adds a lot of debt. The upside? It adds iconic brands that fit perfectly with their "essential" product vibe. If they can pull off the integration, that 5% yield might look like a steal in retrospect.
Comparing the Yield to the Competition
You can't talk about the kimberly clark stock dividend without looking at the neighbors. KMB currently offers a significantly higher yield than many of its rivals.
For example, Procter & Gamble (PG) usually hovers around a 3% yield. Clorox (CLX) is often in the 4% range. When KMB is sitting at 5.1%, it’s basically telling the market, "We know we aren't growing fast, but we'll pay you to wait."
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The stock has been trading at a discount, roughly 13 to 17 times forward earnings. Compare that to the broader market or even its own historical average, and it’s clear the market is skeptical about their revenue growth. Revenue has been relatively flat for years. They’ve mostly grown earnings by cutting costs and buying back shares.
How to Play It: Actionable Insights for 2026
If you’re looking at KMB today, you aren't buying it for a 20% stock price pop. You’re buying it for the mailbox money.
- Check the Ex-Dividend Dates: Historically, Kimberly-Clark goes ex-dividend in early March, June, September, and December. If you want the next check, you usually need to own the stock by the first week of those months.
- Monitor the Cash Flow: Don't just look at Net Income. Look at "Free Cash Flow." That's the actual cash left over to pay you. As long as FCF stays above the dividend payout, the streak is safe.
- Watch the Merger Progress: The Kenvue acquisition is the "make or break" for the next decade. If they successfully integrate those brands without slashing the dividend, the stock will likely re-rate higher.
- Reinvest or Spend: A 5.1% yield is high enough that Dividend Reinvestment Plans (DRIPs) can really snowball your share count quickly.
The kimberly clark stock dividend remains one of the sturdiest pillars in a dividend growth portfolio. While the growth is slow and the debt is something to watch, the company's sheer 91-year history of staying the course suggests they won't give up their "King" status without a fight.
To move forward, verify the current share price against the $1.26 quarterly payout to ensure the yield still meets your target. Then, review your portfolio's exposure to consumer staples to ensure you aren't over-leveraged in one sector before adding more KMB.