We keep talking about big great American companies which are hiking their dividends. Now we have Kimberly-Clark Corporation (NYSE: KMB) out with news that the consumer products giant’s board of directors has approved a dividend increase of 9.5% for their common stock holders. This really matters because Kimberly-Clark already has what we consider to be the highest dividend of its peers and competitors.
The new higher dividend will bring the quarterly dividend to $0.81 per share rather than the $0.74 per share of last year. K-C is a dividend aristocrat as it this marks the forty-first consecutive year that it has raised its dividend. It is also seventy-ninth consecutive year that it has paid dividends. Management talks about the strength of its business and its commitment to allocate capital in shareholder-friendly ways.
We just recently gave a prediction for which key DJIA stocks would be increasing their dividends in the days or weeks ahead. While K-C is not a DJIA stock, this is a key player and its stock just hit a new all-time just this week.
What is so amazing is that its dividend yield was already very high at 3.2%. The new dividend yield for those who still want to buy K-C at current market prices at an all-time high is still 3.5%. Here is how this compares and contrasts against the rivals:
- Procter & Gamble Co. (NYSE: PG) at 2.9%
- Colgate-Palmolive Co. (NYSE: CL) att 2.3%
- and The Clorox Company (NYSE: CLX) at 3.1%.
Kimberly-Clark just put some real pressure on its peers and rivals to continue in their dividend hikes as well.