An In-Depth Look at the Upcoming Dividend and Historical Performance
Kimberly - Clark de Mexico SAB de CV (KCDMY, Financial) recently announced a dividend of $0.11 per share, payable on 2023-12-14, with the ex-dividend date set for 2023-12-05. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's look into Kimberly - Clark de Mexico SAB de CV's dividend performance and assess its sustainability.
What Does Kimberly - Clark de Mexico SAB de CV Do?
Kimberly - Clark de Mexico SAB de CV manufactures and sells a wide selection of paper-based products: napkins, kitchen towels, disposable diapers, feminine-care pads, bathroom tissue, facial tissue, and hand towels, among others. The company's business lines comprise babies and infants, household products, feminine-care products, personal care, and healthcare. Its brand portfolio includes Kleenex, Sanitas, Kimlark, Petalo, Cottonelle, Depend, and Kotex. The company serves the local market, Mexico, but also the United States, Asia, and Central and South America.
A Glimpse at Kimberly - Clark de Mexico SAB de CV's Dividend History
Kimberly - Clark de Mexico SAB de CV has maintained a consistent dividend payment record since 2003. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Kimberly - Clark de Mexico SAB de CV's Dividend Yield and Growth
As of today, Kimberly - Clark de Mexico SAB de CV currently has a 12-month trailing dividend yield of 4.48% and a 12-month forward dividend yield of 4.51%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, Kimberly - Clark de Mexico SAB de CV's annual dividend growth rate was 1.90%. Extended to a five-year horizon, this rate decreased to 1.40% per year. And over the past decade, Kimberly - Clark de Mexico SAB de CV's annual dividends per share growth rate stands at 2.90%.
Based on Kimberly - Clark de Mexico SAB de CV's dividend yield and five-year growth rate, the 5-year yield on cost of Kimberly - Clark de Mexico SAB de CV stock as of today is approximately 4.80%.
The Sustainability Question: Payout Ratio and Profitability
To assess the sustainability of the dividend, one needs to evaluate the company's payout ratio. The dividend payout ratio provides insights into the portion of earnings the company distributes as dividends. A lower ratio suggests that the company retains a significant part of its earnings, thereby ensuring the availability of funds for future growth and unexpected downturns. As of 2023-06-30, Kimberly - Clark de Mexico SAB de CV's dividend payout ratio is 0.82. This may suggest that the company's dividend may not be sustainable.
Kimberly - Clark de Mexico SAB de CV's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Kimberly - Clark de Mexico SAB de CV's profitability 9 out of 10 as of 2023-06-30, suggesting good profitability prospects. The company has reported positive net income for each of year over the past decade, further solidifying its high profitability.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Kimberly - Clark de Mexico SAB de CV's growth rank of 9 out of 10 suggests that the company's growth trajectory is strong relative to its competitors.
Revenue is the lifeblood of any company, and Kimberly - Clark de Mexico SAB de CV's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Kimberly - Clark de Mexico SAB de CV's revenue has increased by approximately 5.60% per year on average, a rate that underperforms approximately 54.31% of global competitors.
The company's 3-year EPS growth rate showcases its capability to grow its earnings, a critical component for sustaining dividends in the long run. During the past three years, Kimberly - Clark de Mexico SAB de CV's earnings decreased by approximately -1.20% per year on average, a rate that underperforms approximately 60.54% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 4.00%, which underperforms approximately 53.29% of global competitors.
Next Steps
In conclusion, while Kimberly - Clark de Mexico SAB de CV's consistent dividend history and current yields are attractive, potential investors should be mindful of the payout ratio and mixed growth metrics. The sustainability of future dividends will largely depend on the company's ability to manage its payout ratio while fostering earnings and revenue growth. With a high profitability rank, Kimberly - Clark de Mexico SAB de CV demonstrates a strong competitive position in its market, yet the underperformance in earnings and revenue growth rates compared to global competitors may call for a closer analysis of its long-term growth strategy.
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This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
