Kimberly Clark Dips to 20% Below Peak Amid Kenvue Acquisition

Kimberly Clark is facing a significant drop in its stock price, down 20% from its 52-week high. Despite this, it remains a Dividend King with an attractive 5% dividend yield.

The company's strong foundation in paper products such as toilet paper and diapers makes it a necessities-based business.

Kimberly Clark is currently in the process of acquiring Kenvue, a move that will make it more comparable to Procter & Gamble, another Dividend King.

The acquisition comes with risks, including integration risk and additional debt on its balance sheet.

In its latest earnings report, Kimberly Clark lowered its full-year guidance, indicating that the business is not performing as well as management had hoped.