Tariff Troubles Are No Match for This Dividend King's Rock-Solid High-Yield Payout
Consumer staples giant Kimberly-Clark (NYSE: KMB) just reported weaker-than-expected results and cut its full-year outlook. The company has dozens of everyday-use brands and professional products centered on paper -- from paper towels and toilet paper to diapers and feminine products.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
Steady demand for Kimberly-Clark's products, no matter what the economy is doing, has allowed the company to raise its dividend for 53 consecutive years, earning it a coveted spot on the list of Dividend Kings. The stock yields a hefty 3.8% as of this writing -- making it a solid source of passive income.
Here's why Kimberly-Clark is a reliable dividend stock to buy now for risk-averse investors.
Tariff talks were far less tense when Kimberly-Clark provided its initial 2025 outlook in late January.
The company originally expected 2025 organic sales growth to outpace the weighted average by 2% in the categories and countries in which it competes. It has since lowered that guidance to a range of 1.5% to 2%. The most significant guidance cut was to adjusted earnings per share (EPS) -- which are expected to be flat to positive on a constant currency basis compared to earlier guidance of mid-to-high single-digit growth.
Kimberly-Clark also expects free cash flow (FCF) of $2 billion, compared to an earlier forecast of more than $2 billion.
The lackluster growth is nothing new for longtime Kimberly-Clark investors. As you can see in the following chart, Kimberly-Clark's stock price has stagnated over the last decade, operating margins have consistently been in the mid-teens range, and revenue is up only modestly in recent years.
As my colleague Eric Volkman pointed out, companies shouldn't use trade tensions as an excuse for underwhelming results. And Kimberly-Clark has been underperforming its peer group for years now.
Last year, the company launched its multiyear Powering Care strategy, which reorganizes the company into three segments -- North America, international personal care, and international family care. The move aims to streamline operations, enhance flexibility, and simplify reporting structures. However, as Kimberly-Clark's latest guidance suggests, the impact of the Powering Care strategy will take time to show up in its results.
Kimberly-Clark isn't at the top of its game and hasn't been for several years now. However, the company does have some key factors going for it that could appeal to risk-averse investors.
For starters, its dividend is reliable. Even with reduced FCF guidance of $2 billion, Kimberly-Clark can support its capital return program entirely with cash. In the recent quarter, it returned $466 million to shareholders through buybacks and dividends.
Secondly, Kimberly-Clark has improved its balance sheet by reducing debt. Its total net long-term debt is near its 10-year low at $6.7 billion.
Finally, Kimberly-Clark stock trades with a price-to-earnings (P/E) ratio of just 18.3 compared to a 10-year median P/E of 23.1. With flat to slightly positive adjusted EPS guidance in the current year, Kimberly-Clark is arguably still a bargain at these levels.
Kimberly-Clark may not be growing briskly, but that's not necessarily a bad thing for investors who are mainly focused on supplementing their income. The stock is a good value compared to more expensive industry peers.
For example, Procter & Gamble is another consumer staples Dividend King that is modestly growing but fetches a 26.7 P/E while paying a lower 2.7% yield. P&G is the better business and worth buying for investors who prioritize quality, but Kimberly-Clark is a better value and has higher passive income potential.
The company ripped off the proverbial bandage by cutting its growth projections for this year. With expectations lowered, Kimberly-Clark has more room to surprise to the upside. And in the meantime, the sizable 3.8% yield provides a worthwhile incentive for income investors to hold the stock.
Before you buy stock in Kimberly-Clark, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Kimberly-Clark wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $594,046!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $680,390!*
Now, it's worth noting Stock Advisor's total average return is 872% — a market-crushing outperformance compared to 160% for the S&P 500. Don't miss out on the latest top 10 list, available when you join .
See the 10 stocks »
*Stock Advisor returns as of April 21, 2025
Daniel Foelber has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Tariff Troubles Are No Match for This Dividend King's Rock-Solid High-Yield Payout was originally published by The Motley Fool
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
13 minutes ago
- Yahoo
How To Earn $500 A Month From Home Depot Stock Ahead Of Q2 Earnings
The Home Depot, Inc. (NYSE:HD) will release earnings results for the second quarter, before the opening bell on Tuesday, Aug. 19. Analysts expect the home improvement retailer to report quarterly earnings at $4.69 per share, up from $4.60 per share in the year-ago period. Home Depot projects to report quarterly revenue of $45.31 billion. Compare that to the $43.17 billion it generated last year during the second quarter, according to data from Benzinga Pro. With the recent buzz around Home Depot, some investors may be eyeing potential gains from the company's dividends. Currently, it offers an annual dividend yield of 2.30%, which is a quarterly dividend amount of $2.30 per share ($9.20 a year). So, how can investors capitalize on its dividend yield to earn a regular $500 monthly? To earn $500 per month or $6,000 annually from dividends alone, you would need an investment of approximately $260,396 or around 652 shares. For a more modest $100 per month or $1,200 per year, you would need $51,919 or around 130 shares. To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($9.20 in this case). So, $6,000 / $9.20 = 652 ($500 per month), and $1,200 / $9.20 = 130 shares ($100 per month). Note that the dividend yield can change on a rolling basis, as both the dividend payment and the stock price fluctuate over time. View more earnings on HD How that works: The dividend yield is computed by dividing the annual dividend payment by the stock's current price. For example, if a stock pays an annual dividend of $2 and is currently priced at $50, the dividend yield would be 4% ($2/$50). However, if the stock price increases to $60, the dividend yield drops to 3.33% ($2/$60). Conversely, if the stock price falls to $40, the dividend yield rises to 5% ($2/$40). Similarly, changes in the dividend payment can impact the yield. If a company increases its dividend, the yield will also increase, provided the stock price remains unchanged. Conversely, if the dividend payment decreases, so will the yield. HD Price Action: Shares of Home Depot fell 0.2% to close at $399.38 on Friday. On Wednesday, Truist Securities analyst Scot Ciccarelli maintained Home Depot with a Buy and raised the price target from $417 to $433, while Telsey Advisory Group analyst Joseph Feldman maintained the stock with an Outperform rating and maintained a $455 price More: Image: Shutterstock UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? HOME DEPOT (HD): Free Stock Analysis Report This article How To Earn $500 A Month From Home Depot Stock Ahead Of Q2 Earnings originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
13 minutes ago
- Yahoo
Pelthos Therapeutics Reports Second Quarter 2025 Financial Results for Legacy Operations and Provides Business Update
Files Quarterly Report on Form 10-Q detailing financial results for legacy operations for the three and six months ended June 30, 2025 Strong physician response following successful launch of ZELSUVMI™ (berdazimer) topical gel 10.3%, the first and only FDA-approved at-home treatment for molluscum contagiosum for patients one year of age and older Completes build-out of essential management operational infrastructure and hires 50 territory sales managers DURHAM, N.C., Aug. 18, 2025 (GLOBE NEWSWIRE) -- Pelthos Therapeutics Inc. (NYSE American: PTHS), a biopharmaceutical company ('Pelthos' or the 'Company') committed to commercializing innovative therapeutic products for high unmet patient needs, today reported financial results for legacy operations for the three and six months ended June 30, 2025. This will be the last set of financial results that the Company will issue solely related to the business operations of Channel Therapeutics Corporation prior to the consummation of the merger (the 'Merger') and the concurrent private placement financing that closed on July 1, 2025. Recent Company Highlights Completed the Merger with Channel Therapeutics and closed the $50.1 million private placement financing As previously announced, on July 1, 2025, Pelthos completed its Merger with and into a wholly owned subsidiary of Channel Therapeutics Corporation and closed a $50.1 million private placement to support the commercial launch of ZELSUVMI™. The combined company now operates under the name Pelthos Therapeutics Inc. The private placement was led by a group of strategic investors including Murchinson Ltd. Subject to certain exceptions, the shares of the Company's common stock, par value $0.0001 per share underlying the shares of Series A Convertible Preferred Stock, par value $0.0001 per share (the 'Series A Preferred Stock'), issued in the private placement financing are locked up through December 31, 2025. The Company's freely tradable public float is currently approximately 600,000 shares of Common Stock. Based on the current common stock outstanding, Pelthos has an estimated market capitalization of approximately $55 million. However, the Company's implied estimated market capitalization would be approximately $165 million based on the conversion of all shares of Series A Preferred Stock issued in connection with the Merger and the private placement financing. Launched ZELSUVMI (berdazimer) topical gel 10.3%, for molluscum contagiosum On July 10, 2025, Pelthos launched ZELSUVMI, the first and only prescription therapy approved by the U.S. Food and Drug Administration ('FDA') for use at home by patients, parents, and caregivers to treat molluscum infections, a highly contagious viral skin condition. ZELSUVMI is a novel, topical nitric oxide-releasing gel for the treatment of molluscum at the time of diagnosis. The once-daily prescription medication is effective, well tolerated, and convenient for at-home or on-the-go application and can be used to treat infections on the body, including sensitive areas such as the face, groin, or underarms. This highly contagious viral skin condition afflicts an estimated 16.7 million people, with up to 6 million new incidents every year in the United States, most of them children.i,ii Completed build-out of management and operational infrastructure and hired 50 territory sales managers Pelthos completed the buildout of its management, operational and sales teams in July. This follows the promotion of Sai Rangarao to Chief Commercial Officer and the appointment of Matt Rysavy to Vice President of Market Access. The Pelthos team now consists of more than 90 employees, including 50 territory sales managers focused on the commercial launch of ZELSUVMI. Management Commentary Scott Plesha, CEO of Pelthos, stated, 'The past month has been defined by focus and execution. Since completing the Merger and closing our private placement financing in early July, we have successfully built out our commercial organization and launched our novel treatment for molluscum into the market. These early achievements position us for an exciting next chapter of growth and innovation.' Mr. Plesha continued, 'We will continue to invest in ZELSUVMI awareness programs to drive sales growth while also focusing on expanding our pipeline and monetizing our legacy pain programs, which are key components of our long-term growth strategy. Our team is currently in advanced discussions to acquire a second FDA-approved pediatric infectious disease product that would complement ZELSUVMI. We look forward to providing further updates over the coming months as we aim to create long-term value for our stockholders.' Sai Rangarao, Pelthos Chief Commercial Officer, added, 'The commercial launch of ZELSUVMI, has been positively received by healthcare practitioners, with orders and prescriptions meeting or exceeding our sales expectations. We believe ZELSUVMI addresses a significant need for HCPs, caregivers, and patients seeking an effective at-home solution to treat molluscum and to reduce or minimize the visible and psychological effects of scarring associated with this highly contagious skin condition.' About Molluscum Contagiosum Molluscum is a poxvirus and one of the most common skin infections seen by dermatologists, pediatric dermatologists, and pediatricians. This highly contagious viral skin condition afflicts an estimated 16.7 million people, with up to 6 million new incidents every year in the United States, most of them children.i,ii, Individuals with compromised immune systems are at an elevated risk of contracting molluscum, with the condition impacting approximately 20% of HIV patients.i Molluscum infections spread to others through contact with infected persons or contaminated objects like towels, toys, furniture, swimming pools, and other surfaces. Molluscum infections present with raised, flesh-colored or red bumps that can appear anywhere on the body, including the face, hands, trunk, genitals, back of the knees, armpits, and other sensitive areas. People with molluscum may suffer discomfort from itching, secondary bacterial infections from scratching, or atopic dermatitis, as well as immense social stigma from having visible molluscum lesions that may persist for months to years. It is estimated that 30% of children will have lesions that persist beyond 18 Up to 73% of children with molluscum go About ZELSUVMI™ (berdazimer) topical gel, 10.3% ZELSUVMI (berdazimer) topical gel, 10.3% is a nitric oxide (NO) releasing agent indicated for the topical treatment of molluscum contagiosum in adults and pediatric patients one year of age and older. ZELSUVMI received a novel drug designation from the U.S. Food and Drug Administration in 2024 and is the first and only approved topical prescription medication that can be applied by patients, parents, or caregivers at home, outside of a physician's office, or other medical setting to treat this highly contagious viral skin infection. The product was developed using the proprietary nitric oxide-based technology platform, NITRICIL™, now owned by Ligand Pharmaceuticals Incorporated. Complete prescribing information and important safety information is available at About Pelthos Therapeutics Pelthos Therapeutics (NYSE American: PTHS) is a biopharmaceutical company committed to commercializing innovative, safe, and efficacious therapeutic products to help patients with unmet treatment burdens. The Company's lead product ZELSUVMI™ (berdazimer) topical gel, 10.3%, for the treatment of molluscum contagiosum, was approved by the U.S. Food and Drug Administration in 2024. More information is available at Follow Pelthos on LinkedIn and X. Forward-Looking Statements This press release contains forward-looking statements, as defined in Section 21E of the Securities Exchange Act of 1934, regarding Pelthos' current expectations. All statements, other than statements of historical fact, could be deemed to be forward-looking statements. In some instances, words such as 'plans,' 'believes,' 'expects,' 'anticipates,' and 'will,' and similar expressions, are intended to identify forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect our good faith beliefs (or those of the indicated third parties) and speak only as of the date hereof. These forward-looking statements include, without limitation, references to our expectations regarding (i) our belief that our completion of the Merger, the closing of the private placement financing, the buildout of our commercial organization and the launch of ZELSUVMI will position us for future growth and innovation, (ii) the anticipated timing of an FDA- approved pediatric infectious disease product, (iii) the belief that ZELSUVMI addresses a significant need for physicians and caregivers seeking an effective at-home solution to treat molluscum and to reduce or minimize the visible and psychological effects of scarring associated with the condition, and (vii) the Company's future opportunities, strategy and plans in the market. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Factors that could cause actual results to differ materially from those set forth in such forward-looking statements include, but are not limited to, risks and uncertainties related to there being no guarantee that the trading price of the combined company's Common Stock will be indicative of the combined company's value or that the combined company's Common Stock will become an attractive investment in the future; we may rely on collaborative partners for milestone payments, royalties, materials revenue, contract payments and other revenue projections and may not receive expected revenue; we and our partners may not be able to timely or successfully advance any product(s) in our internal or partnered pipeline or receive regulatory approval and there may not be a market for the product(s) even if successfully developed and approved; and changes in general economic conditions, including as a result of war, conflict, epidemic diseases, the implementation of tariffs, and ongoing or future litigation could expose us to significant liabilities and have a material adverse effect on us. These and other risks and uncertainties are described more fully in our filings with the U.S. Securities and Exchange Commission. The information in this press release is provided only as of the date of this press release, and we undertake no obligation to update any forward-looking statements contained in this press release based on new information, future events, or otherwise, except as required by law. Contacts Investor Inquiries: Mike MoyerLifeSci Advisors, LLCManaging Director mmoyer@ Media:KWM CommunicationsKellie Walsh / Rachel Kesslerpelthos@ (914) 315-6072 i Neal Bhatia, Adelaide A Hebert, James Q Del Rosso. Comprehensive Management of Molluscum Contagiosum: Assessment of Clinical Associations, Comorbidities, and Management Principles. Journal of Clinical and Aesthetic Dermatology. 2023 Aug;16(8 Suppl 1):S12– Olsen JR, Gallacher J, Finlay A, Piguet V, Francis NA. Time to resolution and effect on quality of life of molluscum contagiosum in children in the UK: a prospective community cohort study. Lancet Infect Dis. 2015;15:190-195 iii Molluscum contagiosum: overview. American Academy of Dermatology. Accessed December 9, 2024. in to access your portfolio
Yahoo
13 minutes ago
- Yahoo
Soho House Strikes Deal To Go Private With $2.7 Billion Offer
Soho House & Co Inc. (NYSE:SHCO) shares jumped Monday after announcing a $2.7 billion deal to go private, offering investors $9.00 per share in cash. The transaction is led by MCR Investors and its Chairman and CEO, Tyler Morse, with financing from Apollo and Goldman Sachs Alternatives. Major shareholders, including Ron Burkle and Yucaipa Companies, will retain controlling stakes, while investors such as Richard Caring and Nick Jones will roll over most of their shares. Tech investor Ashton Kutcher will join the consortium and take a board seat once the deal closes. MCR will acquire shares not held by existing controlling investors, and Morse will become vice chairman of the board. Apollo is providing a hybrid mix of debt and equity financing, while Goldman Sachs Alternatives is adding new capital alongside its current investment. Also Read: The deal requires regulatory clearance and shareholder approval. Closing is expected by the end of 2025, at which point Soho House will delist from the New York Stock Exchange. Alongside the buyout, Soho House named Neil Thomson its chief financial officer, effective August 18, 2025. Thomson previously held senior finance roles at Tasty Restaurant Group, Del Frisco's, and Yum! Brands. He succeeds Thomas Allen, who will stay through August to ensure a smooth transition. CEO Andrew Carnie praised Allen for steering the company during its public chapter while welcoming Thomson's operational and financial expertise. The move highlights renewed private equity appetite for hospitality and lifestyle brands. Comparable operators include Hilton Worldwide Holdings Inc. (NYSE:HLT) and Hyatt Hotels Corp. (NYSE:H), while broader exposure comes through the Invesco Dynamic Leisure and Entertainment ETF (NYSE:PEJ) and the Consumer Discretionary Select Sector SPDR Fund (NYSE:XLY). Price Action: At last check Monday, SHCO shares were trading 15.7% higher at $8.84 premarket. Read Next:Photo by Mameraman via Shutterstock Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? This article Soho House Strikes Deal To Go Private With $2.7 Billion Offer originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
