Dividend Information about Kimberly-Clark: Everything You Need to Know Before Its Ex-Dividend Date on Sep 5, 2025

Generated by AI AgentAinvest Dividend Digest
Monday, Sep 1, 2025 7:56 pm ET2min read
Aime RobotAime Summary

- Kimberly-Clark announced a $1.26/share dividend, consistent with its 10-year average, payable Oct 2, 2025, to shareholders before the Sep 5 ex-dividend date.

- The company settled a $40.4M criminal charge over adulterated surgical gowns, raising concerns about cash flow and quality control in its healthcare division.

- Leadership changes include John Carmichael as North America President, aiming to boost regional growth, while 2024 payout ratios (67% earnings, 78% free cash flow) highlight sustainable but cautious dividend management.

- Shares rose to $129.14 amid 3.3% annual EPS growth, but analysts caution limited reinvestment opportunities due to high payout ratios despite a 3.9% trailing yield.



Kimberly-Clark (KMB) has announced its upcoming dividend payment of $1.26 per share, with the ex-dividend date set for Sep 5, 2025. The company made the official announcement on Aug 1, 2025, and the dividend will be distributed to eligible shareholders on Oct 2, 2025. This payment aligns with the company’s historical trend, as the average of the last 10 dividends per share is also $1.26, indicating a consistent payout pattern. The last dividend was paid on Jul 2, 2025, with the same amount of $1.26 per share, and both this and the upcoming payments are in the form of cash dividends. Investors should note that the company maintains a regular dividend policy, which has historically contributed to its appeal among income-focused shareholders.

Recently, the company has been under scrutiny due to legal settlements related to product quality concerns. Over the past week, agreed to pay up to $40.4 million to resolve a criminal charge associated with the sale of adulterated surgical gowns. The settlement highlights the importance of compliance and quality control in its healthcare products division. Analysts indicated that this could temporarily affect the company’s cash flow and public perception, though the long-term impact remains to be seen. As of late, the firm has emphasized its commitment to improving internal safeguards, which could bolster stakeholder confidence.

In addition to the legal developments, the company has also made strategic leadership changes. Last month, Kimberly-Clark announced the appointment of John Carmichael as President, North America, effective Sept 15, 2025. This leadership shift is expected to drive regional growth initiatives and enhance operational efficiency. Investors are watching closely to see how these changes will influence the company’s performance in the near term. Meanwhile, financial fundamentals show that the company paid out 67% of its earnings and 78% of its free cash flow in the last fiscal year, signaling a strong but cautiously managed payout strategy. Despite these high ratios, the dividend remains covered by both earnings and cash flow, suggesting a degree of sustainability.

Since the last update, the company’s stock has seen a modest increase, with shares trading at $129.14 as of the latest market close. While revenue growth has slowed, earnings per share have shown a positive trend, rising by an average of 3.3% annually over the past five years. This combination of steady earnings and consistent dividend payments has historically supported a trailing yield of approximately 3.9%. However, analysts remain cautious about the company’s growth trajectory, as reinvestment opportunities appear limited given the high payout ratios.

In conclusion, investors interested in receiving the upcoming dividend must purchase shares before the ex-dividend date of Sep 5, 2025, to be eligible for the $1.26 per share payout on Oct 2, 2025. Given recent developments in product safety, leadership changes, and financial performance, it is important for investors to weigh both the opportunities and risks associated with this investment.

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