The article describes Kimberly-Clark, maker of Kleenex tissues and Cottonelle toilet paper, as having a long record of reliable dividends: it has raised its dividend for 54 consecutive years and paid dividends for 92 consecutive years, earning Dividend King status. Net income was $1.7 billion in 2023, $2.5 billion in 2024 and $2 billion in 2025, and the dividend yields 4.7% at the current share price. The company closed its Kenvue acquisition on Nov. 2, but 2025 sales of $16.4 billion fell 2.1% from $16.8 billion in 2024. The author concludes it is about as safe a dividend stock as there is, while noting acquisition risks and the sales slump that investors should be aware of.
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- Kimberly-Clark Acquires Kenvue. Here’s What Investors Need to Know Ahead of Its Nov. 5 Earnings Report.
Kimberly-Clark's acquisition of consumer healthcare company Kenvue, with an enterprise value of about $48.7 billion, closed on Monday, almost a year after it was first announced. Kenvue shareholders received $3.50 in cash plus almost 0.15 Kimberly-Clark shares for each Kenvue share, with existing Kimberly-Clark investors expected to own about 54% of the combined company. The cash portion was funded partly by $4.9 billion in senior notes and the sale of a 51% stake in its consumer paper and B2B hygiene business to Suzano, while the companies expect $2.1 billion in annual run-rate synergies within three years. Kimberly-Clark currently has a 54-year streak of dividend increases, while its share buybacks, which totaled $1 billion in 2024, fell to $0 in 2026. Kenvue's recent results are not included in the third-quarter report due on November 5, and the author believes the deal is a good move despite the high price.
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Clorox's first-quarter fiscal 2027 net sales rose 33% to nearly $1.91 billion, driven mostly by the Gojo acquisition and a low comparison base after last year's ERP upgrade. Adjusted net income reached $190 million, or $1.55 per share versus $0.85 a year earlier, beating consensus of $1.88 billion in net sales and $1.07 adjusted EPS, though shares slipped slightly after hours. The company kept most of its fiscal 2027 guidance but now expects adjusted EPS near the bottom of the $5.70 to $6 range and cut its gross margin forecast to 41.5% from 42%. Long-term debt rose 60% to almost $4 billion after the all-cash $2.25 billion Gojo deal, while operating cash flow climbed 54%. The author notes the 5.6% dividend yield and 49 straight years of increases, says the high payout ratio needs watching, and predicts Clorox will reach Dividend King status in 2027.
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