Kimberly-Clark's Dividend Streak Faces Pressure from Smaller Raises and Falling Cash Flow

Kimberly-Clark's streak of 54 consecutive years of dividend increases has come under scrutiny due to smaller raises and falling free cash flow. The quarterly payout increased from $1.26 in 2026 to $1.28, but this is the smallest raise in recent years. Meanwhile, the Consumer Price Index rose by 0.4% in August 2026.

Shares of Kimberly-Clark trade at $98.55, down 15.6% over one year and 9.64% over five years. The company's free cash flow fell 34.78% to $1.639 billion in 2025 as capital spending jumped 57.84%. Management expects 'right around $150 million of gross input cost headwinds' in the second half.

CEO Mike Hsu described the customer base as being under increased pressure, especially among low-income consumers. The company's peers, Procter & Gamble and Colgate-Palmolive, have been able to maintain larger dividend raises with growing free cash flow. Kimberly-Clark's $48.7 billion Kenvue deal is expected to close by the end of this year.