Balancing Dividends and Fundamentals: The Case of NYSE:KMB.

Last update: Mar 4, 2024

Our stock screener has spotted KIMBERLY-CLARK CORP (NYSE:KMB) as a good dividend stock with solid fundamentals. NYSE:KMB shows decent health and profitability. At the same time it gives a good and sustainable dividend. We'll dive into each aspect below.

Evaluating Dividend: NYSE:KMB

ChartMill employs its own Dividend Rating system for all stocks. This score, on a scale of 0 to 10, is determined by evaluating different dividend factors, such as yield, historical performance, dividend growth, and sustainability. NYSE:KMB has been assigned a 8 for dividend:

With a Yearly Dividend Yield of 4.03%, KMB is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.52, KMB pays a better dividend. On top of this KMB pays more dividend than 91.67% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, KMB pays a better dividend.
KMB has paid a dividend for at least 10 years, which is a reliable track record.
KMB has not decreased their dividend for at least 10 years, which is a reliable track record.
KMB's earnings are growing more than its dividend. This makes the dividend growth sustainable.

Deciphering NYSE:KMB's Health Rating

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:KMB has received a 5 out of 10:

KMB has an Altman-Z score of 3.85. This indicates that KMB is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.85, KMB is doing good in the industry, outperforming 66.67% of the companies in the same industry.
KMB has a debt to FCF ratio of 2.89. This is a good value and a sign of high solvency as KMB would need 2.89 years to pay back of all of its debts.
The Debt to FCF ratio of KMB (2.89) is better than 66.67% of its industry peers.

Assessing Profitability for NYSE:KMB

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:KMB has achieved a 7:

The Return On Equity of KMB (192.79%) is better than 91.67% of its industry peers.
The Return On Invested Capital of KMB (22.55%) is better than 83.33% of its industry peers.
The Average Return On Invested Capital over the past 3 years for KMB is significantly above the industry average of 13.69%.
The last Return On Invested Capital (22.55%) for KMB is above the 3 year average (20.65%), which is a sign of increasing profitability.
In the last couple of years the Profit Margin of KMB has grown nicely.
The Operating Margin of KMB (14.69%) is better than 66.67% of its industry peers.

Every day, new Best Dividend stocks can be found on ChartMill in our Best Dividend screener.

For an up to date full fundamental analysis you can check the fundamental report of KMB

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.