Dividend King Kimberly-Clark Is a Good Buy in 2025

Core Insights - Kimberly-Clark is recognized as a Dividend King, indicating strong cash flows that support reliable dividends and consistent growth in shareholder value [1] - The stock price has experienced fluctuations, with recent downswings followed by anticipated upswings, suggesting a sustainable uptrend [2][3] - The company is well-positioned in the personal care products industry, which is essential and regularly needed, contributing to solid cash flows [5] Financial Performance - In Q1, revenue decreased by 6% to $4.8 billion, slightly below consensus estimates, primarily due to divestitures, while organic contraction was only 1.6% [6] - The adjusted gross margin contracted by 20 basis points, but operating margin was less affected than analysts forecasted, aided by efficiency efforts [7] - Earnings declined by 4%, with free cash flow expected to be nearly$ 2 billion, indicating financial health [8][9] Capital Returns - Kimberly-Clark has a dividend yield of 3.66%, with an annual dividend of $5.04 and a 54-year track record of dividend increases [10] - Share repurchases reduced the share count by 1.5% in Q1, contributing to capital returns alongside dividends [10] Analyst Sentiment - Analysts maintain a consensus rating of Hold, with institutions owning approximately 75% of the stock, indicating strong institutional interest [11] - There is a forecasted upside of about 5% for the stock this year, with recent price target increases aligning with consensus [11] Market Trends - The stock is currently range-bound but shows signs of regaining a long-term uptrend, with support levels rising [12] - A retest of the all-time high is anticipated, with potential for new highs by the end of the year [12]