The company has delivered dividend-growth for 48 consecutive years, which means that Kimberly-Clark is on track to becoming a dividend king in the first half of this decade.
The company released its fourth quarter and full-year results for 2019 on January 23. For the full-year Kimberly-Clark posted sales of $18.5 billion which were mostly flat from the year-ago period.
Organic sales posted 4% growth. Adjusted operating profit climbed 5% year-over-year to $3.28 billion and adjusted earnings per share increased 4% to $6.89.
Management is forecasting net sales growth of 1% for fiscal 2020 and adjusted earnings per share between $7.10 and $7.35.
The company projects adjusted operating profit growth between 3% and 5%. Kimberly-Clark announced a 3.9% dividend hike in the report that brings its quarterly distribution to $1.07 per share. This represents a 3.2% yield.
So, how does its value look in the middle of this global stock rout? Shares last possessed a price-to-earnings ratio of 21 and a whopping price-to-book value of 63. Its P/E ratio is at a favourable level in comparison to industry peers.
Shares have plunged 5.7% over the past week as of close on February 27. The stock last had a Relative Strength Index (RSI) value of 24, which puts Kimberly-Clark stock well into technically oversold territory.
Kimberly-Clark is on the path to collecting its dividend crown, and the stock looks undervalued after a brutal week to finish February.