Is Kimberly-Clark the Safest Dividend Stock You Can Buy Now?
With 54 consecutive years of payout increases and a dividend that currently yields 4.7%, there's a lot to like about Kimberly-Clark.
Kimberly-Clark (KMB) is a company that produces everyday household items such as Kleenex tissues and Cottonelle toilet paper. These products may seem unexciting, but they have generated consistent dividend payments for shareholders over many decades. Kimberly-Clark has been a Dividend King for 54 consecutive years, paying dividends for a total of 92 years. This reliability, coupled with the company's profitability, makes it an attractive option for investors seeking a safe dividend stock.
The company currently offers a dividend yield of 4.7% at its current share price, providing a solid return on investment. However, Kimberly-Clark is facing some challenges that investors should be aware of. Recently, the company closed its acquisition of Kenvue, which formerly belonged to Johnson & Johnson before its 2022 spinoff. While this acquisition brought in well-known brands like Tylenol and Band-Aid, integrating these operations into Kimberly-Clark's business model may present some risks.
Additionally, Kimberly-Clark has experienced a sales decline of 2.1% from 2024 to 2025, with total sales amounting to $16.4 billion for the year. Despite these challenges, the company's ability to consistently generate profits and maintain its dividend payments sets it apart as a relatively safe investment option in the current market environment.
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