Why NYSE:KMB provides a good dividend, while having solid fundamentals.

Last update: Sep 5, 2024

KIMBERLY-CLARK CORP (NYSE:KMB) has caught the attention of dividend investors as a stock worth considering. NYSE:KMB excels in profitability, solvency, and liquidity, all while providing a decent dividend. Let's delve into the details.

Looking at the Dividend

ChartMill assigns a proprietary Dividend Rating to each stock. The score is computed by evaluating various valuation aspects, like the yield, the history, the dividend growth and sustainability. NYSE:KMB was assigned a score of 7 for dividend:

KMB's Dividend Yield is rather good when compared to the industry average which is at 2.35. KMB pays more dividend than 91.67% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.24, KMB pays a better dividend.
KMB has been paying a dividend for at least 10 years, so it has 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.

Evaluating Health: NYSE:KMB

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NYSE:KMB, the assigned 5 for health provides valuable insights:

KMB has an Altman-Z score of 4.27. This indicates that KMB is financially healthy and has little risk of bankruptcy at the moment.
KMB's Altman-Z score of 4.27 is fine compared to the rest of the industry. KMB outperforms 66.67% of its industry peers.
The Debt to FCF ratio of KMB is 2.78, which is a good value as it means it would take KMB, 2.78 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 2.78, KMB is doing good in the industry, outperforming 66.67% of the companies in the same industry.

Understanding NYSE:KMB's Profitability

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 8:

KMB's Return On Assets of 13.23% is fine compared to the rest of the industry. KMB outperforms 75.00% of its industry peers.
The Return On Equity of KMB (201.32%) is better than 91.67% of its industry peers.
KMB has a better Return On Invested Capital (24.27%) than 91.67% of its industry peers.
The Average Return On Invested Capital over the past 3 years for KMB is significantly above the industry average of 14.51%.
The 3 year average ROIC (20.65%) for KMB is below the current ROIC(24.27%), indicating increased profibility in the last year.
KMB's Profit Margin of 11.28% is fine compared to the rest of the industry. KMB outperforms 66.67% of its industry peers.
KMB's Profit Margin has improved in the last couple of years.
KMB has a better Operating Margin (15.71%) than 66.67% of its industry peers.

Our Best Dividend screener lists more Best Dividend stocks and is updated daily.

Our latest full fundamental report of KMB contains the most current fundamental analsysis.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.