Group 1: Conagra Brands - Conagra Brands has seen its stock price decline to around $19, trading at about 11 times forward earnings, which is considered a bargain compared to the S&P 500's nearly 22 times forward earnings [4] - The company has experienced a 50% loss in stock value over the past three years, with net sales declining by 6.8% in fiscal Q2 2026, partly due to the sale of non-core brands [3] - Conagra's dividend yield is currently at 7.3%, the highest in the S&P 500, despite a payout ratio approaching 80%, which is above its target of 50%-55% [4] Group 2: Kimberly Clark - Kimberly Clark's stock has lost about 25% of its value over the last three years, with sales down 2.1% last year primarily due to divestitures [5] - The stock is currently priced over $110 per share, trading at about 15 times earnings, which is cheaper than the broader market [6] - Kimberly Clark has a dividend yield of 4.3% and has extended its streak of dividend increases to 54 years, qualifying it as a Dividend King [6]

Core Viewpoint - The article discusses the appeal of five Dividend Aristocrats as preferred retirement income stocks for Baby Boomers, emphasizing their reliability in providing consistent dividend increases over 25 years, which is crucial for investors seeking stable income during market volatility [1]. Group 1: Dividend Aristocrats Overview - Dividend Aristocrats are S&P 500 companies that have raised their dividends for 25 consecutive years, making them attractive for growth and income investors [1]. - The 69 companies on the 2026 S&P 500 Dividend Aristocrats list must meet specific criteria, including being a member of the S&P 500, having an average daily trading volume of at least $5 million, and a market capitalization of at least $3 billion [1]. Group 2: Featured Dividend Aristocrats - **Amcor PLC**: Offers a 5.18% dividend and is involved in sustainable packaging solutions across various industries, including food and healthcare. It has a Buy rating with a target price of $60 [1]. - **Eversource Energy**: Provides a 4.09% dividend and operates in energy delivery across Connecticut, Massachusetts, and New Hampshire. It has a Buy rating with a target price of $79 [1]. - **Hormel Foods Corp.**: Known for its diverse food products, it offers a 4.95% dividend and is restructuring to improve performance. It has a Buy rating with a target price of $31 [2]. - **Kimberly-Clark Corp.**: A personal care company with a 4.66% dividend, it has raised dividends for 53 consecutive years and is acquiring Kenvue Inc. in a $48.7 billion deal. It has a Buy rating with a target price of $120 [2]. - **Realty Income Corp.**: A real estate investment trust with a 4.89% monthly dividend, it invests in commercial properties and has a Buy rating with a target price of $69 [2].

Kimberly-Clark (NYSE:KMB) 2026 Conference February 19, 2026 11:00 AM ET Company ParticipantsCraig Slavtcheff - Chief R&D OfficerMike Hsu - Chairman and CEOPatricia Corsi - Chief Growth OfficerRuss Torres - President and COONone - Video NarratorOperatorHi, everyone. Our next presenter is Kimberly-Clark, which is currently in the midst of one of the largest transactions and biggest corporate transformations in CPG history. The team is led by Chairman and CEO, Mike Hsu. Since taking the helm as CEO in 2019, Mi ...

Core Insights - Kimberly-Clark Corporation presented at the 2026 CAGNY Conference, emphasizing its operational agility and capabilities to leverage growth trends and create generational value through the acquisition of Kenvue [1] Group 1: Growth Strategy - The company has launched the "Powering Care" transformation in 2024, resulting in solid volume-plus-mix led growth, with market share improvements in two-thirds of its country/category combinations over the past two years [1] - Kimberly-Clark's operating model focuses on cross-functional collaboration and productivity, achieving gross productivity improvements in the 6% range of cost of goods sold over the last two years [1] Group 2: Brand Development - The company aims to build brand loyalty through innovative marketing strategies and digital capabilities, enhancing user engagement and benefits across its product portfolio [1] - With the acquisition of Kenvue, Kimberly-Clark is positioned to capitalize on demographic trends in baby care, women's health, and active aging, which are expected to grow at mid-to-high single-digit rates [1] Group 3: Innovation and R&D - Kimberly-Clark's R&D organization has been restructured to deliver rapid and scalable innovations, contributing to over 75% of the company's volume-plus-mix led growth in 2025 [1] - The company’s innovation pipeline is reported to be the strongest in its history, aimed at driving incremental growth while maintaining cost efficiency over the next three years [1]

KIMBERLY - CLARK CAGNY 2026 Forward-Looking Statements Certain matters contained in this presentation concerning our plans and expectations regarding the pending mergers with Kenvue and the pending International Family Care and Professional ("IFP") joint venture transaction with Suzano ("IFP Transaction"), the business outlook, including raw material, energy and other input costs, the anticipated charges and savings from the 2024 Transformation Initiative, cash flow and uses of cash, growth initiatives, inn ...

Core Insights - Kenvue exceeded Wall Street estimates for its fourth-quarter results and announced a global workforce reduction as it moves towards a planned acquisition by Kimberly-Clark [1] Financial Performance - Kenvue's fourth-quarter net sales increased by 3.2% to $3.78 billion, surpassing analysts' consensus of $3.68 billion [1] - The self-care segment, which includes brands like Tylenol and Benadryl, reported a 1.5% increase in net sales to $1.59 billion, exceeding estimates of $1.52 billion [1] - The essential health unit, housing brands such as Listerine and Band-Aid, achieved net sales of $1.15 billion, a 6.1% year-over-year rise, compared to the average estimate of $1.12 billion [1] - Kenvue posted a quarterly adjusted profit of 27 cents per share, while analysts had estimated 22 cents per share [1] Workforce Reduction - Kenvue's board approved a plan to optimize its operating model, resulting in a net reduction of approximately 3.5% of its global workforce, which was about 22,000 employees last year [1] - The planned job cuts are expected to incur pre-tax restructuring expenses and other charges totaling around $250 million in 2026 [1] Acquisition Plans - Kimberly-Clark proposed to acquire Kenvue for over $40 billion to create a global consumer health company, with the merger expected to close in the second half of 2026 [1]

Core Viewpoint - Kenvue Inc. has been downgraded by Jefferies from Buy to Hold, with a reduced price target of $18, reflecting concerns over limited upside potential and litigation risks following the approval of its merger with Kimberly-Clark [1][7]. Group 1: Merger Approval - Shareholders of both Kimberly-Clark and Kenvue have overwhelmingly approved the merger, with approximately 96% of Kimberly-Clark shares and about 99% of Kenvue's voting shares in favor [2]. - The merger is expected to create a global leader in health and wellness by combining well-known brands such as Huggies, Kleenex, Tylenol, and Neutrogena, with the transaction anticipated to close in the second half of 2026, pending regulatory approvals [3]. Group 2: Company Overview - Kenvue Inc. operates as a consumer health company across various regions, including the US, Europe, the Middle East, Africa, Asia-Pacific, and Latin America, and is structured into three segments: Self Care, Skin Health and Beauty, and Essential Health [4].

Group 1: Chevron - Chevron offers a reliable dividend yield of 4% and has increased its dividend for 37 consecutive years, making it a strong candidate for passive income [4][6] - The company has outlined a plan to grow free cash flow (FCF) and earnings per share by at least 10% when Brent crude oil prices are at $70, with a breakeven point at $50 per barrel [5] - Chevron's solid balance sheet provides a cushion during downturns, allowing it to maintain its dividend even if oil prices fall below $50 [5] Group 2: Kimberly Clark - Kimberly Clark, known for brands like Kleenex and Huggies, is currently priced below $100 a share, which is a 12-year low, presenting a potential buying opportunity [9] - The company announced the acquisition of Kenvue, aiming for billions in annual cost synergies and expecting to grow earnings in the second year post-acquisition [9][10] - Kimberly Clark has a 5.2% dividend yield and a forward price-to-earnings ratio of 13.1, positioning it as a strong value stock for passive income [12]

Core Viewpoint - Kimberly-Clark Corporation and Kenvue Inc. have received overwhelming shareholder approval for Kimberly-Clark's acquisition of Kenvue, marking a significant step towards creating a global health and wellness leader [1][2]. Group 1: Transaction Details - The acquisition transaction is expected to close in the second half of 2026, pending regulatory approvals and other customary closing conditions [3]. - Approximately 96% of shares present at Kimberly-Clark's Special Meeting voted in favor of the share issuance related to the transaction [2]. - At Kenvue's Special Meeting, about 99% of shares voted to adopt the merger agreement, representing approximately 77% of all outstanding shares [2]. Group 2: Company Statements - Kimberly-Clark's CEO, Mike Hsu, expressed gratitude to shareholders for their support and emphasized the potential to raise care standards for billions globally while generating significant shareholder value [2]. - Kenvue's CEO, Kirk Perry, highlighted the growth opportunities for the combined company and the potential to accelerate innovation and expand access to trusted brands [2]. Group 3: Company Backgrounds - Kimberly-Clark operates in over 175 countries with a portfolio of brands that hold No. 1 or No. 2 market share positions in approximately 70 countries, focusing on sustainable practices [4]. - Kenvue is recognized as the world's largest pure-play consumer health company by revenue, with a heritage of over a century and a portfolio of well-known brands [5].

Core Viewpoint - Kenvue shareholders are set to vote on Kimberly-Clark's $48.7 billion acquisition proposal, which aims to create a significant consumer health and wellness entity by merging well-known brands [1] Group 1: Acquisition Details - The merger deal offers Kenvue shareholders $21.01 per share, which is a substantial premium compared to the current trading price of around $17, although Kenvue stock is trading approximately 18% below the deal price [2] - The proposed merger would combine two consumer goods giants, serving nearly half of the global population, with Kimberly-Clark expecting to achieve around $2.1 billion in synergies while maintaining strong margins [3] Group 2: Kenvue's Financial Performance - Kenvue has faced operational challenges, reporting a 3.5% decline in net sales and a 4.4% drop in organic sales in the third quarter, continuing a trend of weakness throughout 2025 [5] - The company experienced a 4% drop in volume and a 0.4% decrease in pricing power, affecting all business segments, including a 5.3% decline in Self-Care and a 4.2% drop in Essential Health [6] Group 3: Market Dynamics - Low seasonal incidences of allergies and flu have negatively impacted demand for products like Zyrtec and Tylenol, compounded by inventory reductions at major retailers and shipment timing issues in China, indicating deeper distribution challenges [7] - Despite market share gains for flagship brands like Zyrtec and Tylenol, these successes have not translated into sales growth, raising concerns about Kenvue's ability to recover independently [8]