Jim Cramer Says Kimberly-Clark’s Acquisition of Kenvue Creates a High-Margin Powerhouse

Corporate ActionEarnings

Summary · why it matters

Jim Cramer highlighted Kimberly-Clark as a defensive holding on CNBC's Mad Money, citing its acquisition of Kenvue, Johnson & Johnson's former consumer health business. The deal adds brands like Tylenol, Neutrogena, Listerine, and Band-Aids, creating a high-margin powerhouse with steady cash flow through economic cycles. Kimberly-Clark trades at roughly 14 times earnings, near its lowest multiple in a decade, and offers a 4.74% dividend yield after raising its quarterly payout to $1.28 per share, backed by 54 consecutive years of dividend increases. Cramer sees the stock as a long-term opportunity with potential upside from the Kenvue integration, though he does not expect a blowout second-quarter report on August 4th. Institutional investors own about 93% of the company, while a 14.5% short float could fuel a squeeze if integration results beat expectations.