Kimberly-Clark reports weaker results, lowers outlook, but remains attractive for income investors

From Yahoo Finance: 2025-04-27 18:00:00

This earnings season is crucial as companies adjust to recent changes. Kimberly-Clark reported weaker results, cutting its full-year outlook due to steady demand for its paper products. Despite stagnant growth, the stock offers a 3.8% yield and remains a reliable dividend stock for risk-averse investors.

The company has lowered its 2025 growth outlook, impacting sales and earnings projections. Kimberly-Clark’s stock has remained flat, with consistent operating margins and modest revenue growth over the past decade. The company has underperformed its peers for years, attributing it to trade tensions.

Kimberly-Clark faces challenges with its Powering Care strategy, aiming to streamline operations. Despite lackluster growth, the company remains attractive to income-focused investors due to its reliable dividend, improved balance sheet, and low P/E ratio. The stock offers a good value compared to industry peers.

Investors should consider Kimberly-Clark’s reduced growth projections but also its potential for positive surprises. With a sizable 3.8% yield, the stock provides an incentive for income investors. The company’s stock is a good value compared to competitors like Procter & Gamble, offering higher passive income potential.

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