Unilever plc (ADR) (UL): How Kimberly Clark Corp (KMB)’s Dividend Keeps Getting Bigger

The good news for dividend investors is that after long periods of slow growth, Kimberly Clark Corp (NYSE:KMB) has really accelerated its dividend increases over the past decade. Earlier this year, the company’s annual boost amounted to almost 10%, which was an improvement over the roughly 6% increases it made in early 2011 and 2012.

When will Kimberly-Clark boost its payout?
One thing investors should keep an eye on over the long run is Kimberly Clark Corp (NYSE:KMB)’s payout ratio, which is relatively high compared to some of its Dividend Aristocrat peers. Its willingness to be generous with its dividends is a key reason its yield is so high, but investors will need to see earnings growth keep up with rising dividend payouts in order to keep sizable future increases coming. Kimberly-Clark’s near-term success should play a big role in whether it’s able to make another 10% dividend increase early in 2014 or whether it returns to more modest raises.

With a solid stable of popular brands, though, Kimberly Clark Corp (NYSE:KMB) has the parts in place to stay in the good graces of income-hungry dividend investors. With continued efforts, Kimberly-Clark should be able to sustain its impressive dividend track record well into the future.

The article How Kimberly-Clark’s Dividend Keeps Getting Bigger originally appeared on Fool.com and is written by Dan Caplinger.

Fool contributor Dan Caplinger has no position in any stocks mentioned. You can follow him on Twitter @DanCaplinger. The Motley Fool recommends Kimberly-Clark, Procter & Gamble, and Unilever. 

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