Kimberly-Clark's Dividend Streak Faces Pressure from Shrinking Raises

Kimberly-Clark's (KMB) streak of 54 consecutive years of raising its dividend may be impressive, but it masks a concerning trend. The company's quarterly payout increased by just $0.02 in 2026, the smallest raise in recent years.

This modest increase comes as free cash flow fell 35% to $1.639 billion in 2025, largely due to heavy capital spending. In contrast, Procter & Gamble (PG) and Colgate-Palmolive (CL) saw their free cash flow grow by 12.74% and 2.48%, respectively.

Kimberly-Clark's CEO Mike Hsu acknowledged the challenges facing consumers, stating that 'consumers are clearly under increased pressure.' The company is expecting $150 million of gross input cost headwinds in the second half, with North American price increases of 'low single digits overall.'