Kimberly-Clark announces biggest dividend hike since 2015

Kimberly Clark dividend increase 2021
Dividend Aristocrat Kimberly-Clark Corporation (KMB) will raise its dividend for the 49th consecutive year in 2021. The 6.5% dividend hike just announced is the biggest since 2015.

The company's Board of Directors has approved a 6.5 percent increase in the quarterly dividend, which is the 49th consecutive annual increase in the dividend.  The Board also authorized a new $5 billion share repurchase program which supplements the current $5 billion authorization that is expected to be completed later in 2021. 

 These actions reflect the company's strong cash flow and growth prospects along with an ongoing commitment to return cash to shareholders.

The quarterly dividend will increase to $1.14 per share, up from $1.07 per share in 2020. The first dividend will be payable on April 5, 2021 to stockholders of record on March 5, 2021. A new annual dividend of $4.56 per share for Kimberly Clark yields 3.3% at a stock price of $136.

Chairman and Chief Executive Officer Mike Hsu said, "In 2020, we grew organic sales 6 percent, with healthy underlying performance and increased demand because of COVID-19.  We also significantly increased brand investments and improved our market share positions.  In addition, we achieved $575 million of cost savings and returned $2.15 billion to shareholders through dividends and share repurchases.  Finally, we grew adjusted earnings per share 12 percent, well above our medium-term objective.  I'm extremely proud of what our teams accomplished while staying relentlessly focused on employee health and safety and meeting the needs of our consumers during this unprecedented time period."

Kimberly-Clark and its well-known global brands are an indispensable part of life for people in more than 175 countries. Every day, nearly a quarter of the world's population trust K-C brands and the solutions they provide to enhance their health, hygiene and well-being. With brands such as Kleenex, Scott, Huggies, Pull-Ups, Kotex and Depend, Kimberly-Clark holds No. 1 or No. 2 share positions in 80 countries. 

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