10 Best Soaps and Cleaning Materials Stocks to Invest In

5. Kimberly-Clark Corporation (NYSE:KMB)

Number of Hedge Fund Holders: 45

Kimberly-Clark Corporation (NYSE:KMB) manufactures and markets a range of products by employing advanced technologies in absorbency, nonwovens, and fibers. It operates in three segments: the Personal Care segment, the Consumer Tissue segment, and the K-C Professional segment. It sells its products under various brands, including Kleenex, Scott, Cottonelle, DryNites, Huggies, and others.

The company is known to produce consistent results irrespective of the economic cycle, giving it the reputation of a stock that manages well even during a broader market sell-off. It is, however, experiencing volume and pricing pressure. Consolidated volumes grew by only 1% in the first three quarters of fiscal 2024, and net prices increased by 2%. These headwinds are caused by several factors, such as retail inventory reductions as its service levels improve, weaker demand in North American professional channels, decreased demand in private label businesses, and pockets of deceleration in Latin America and Asia.

Although the company’s growth does not paint a positive picture, it is a source of passive income at value. This is why investors with more interest in dividend income instead of potential capital gains are bullish on Kimberly-Clark Corporation (NYSE:KMB). It is driving consumption and growing its share across markets and categories, supported by increased commercial execution and acceleration in innovation. It ranks fifth on our list of the best soaps and cleaning materials stocks to invest in.