Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTSyeda Seirut JavedSat, July 25, 2026 at 2:22 PM GMT+2 5 min readOn Tuesday's episode of CNBC's Mad Money, Jim Cramer highlighted Kimberly-Clark Corporation (NYSE:KMB) as a defensive holding for investors looking to lock in profits from high-flying technology stocks and reallocate into lower-risk value plays. After years of sluggish price action, Cramer noted that the consumer giant has finally established a stable bottom, anchored by a major strategic transformation:This one's finally found its footing after struggling for years. Best of all, Kimberly-Clark realized it needs to consolidate, which is why it's acquiring Kenvue, J&J's old consumer health business. I want you to think there… Tylenol, Neutrogena, Listerine, Band-Aids. These are everyday necessities that consumers buy regardless of the state of the economy or the price of gasoline. Doesn't hurt that Kimberly-Clark will pay you handsomely while you wait for the deal to close.The Kenvue Catalyst and Defensive MoatThe acquisition of Kenvue Inc. (NYSE:KVUE), the consumer health business spun off from Johnson & Johnson (NYSE:JNJ), gives Kimberly-Clark control over everyday staples including Tylenol, Neutrogena, Listerine, and Band-Aids. In Cramer's view, these essential health and wellness products generate steady cash flow through every economic cycle because consumer demand remains constant regardless of broader economic conditions or fuel prices. In addition, the combination provides a credible path toward accelerated revenue growth, higher operating margins, and substantial cost-reduction opportunities while protecting the business from foreign competition.Valuation Snapshot and Dividend King StatusDespite its long-term stability, the stock has traded sideways for an extended period, creating what Cramer describes as a rare bargain in an otherwise rich market. Trading at roughly 14 times this year's earnings, Kimberly-Clark sits near its lowest valuation multiple in a decade, outside of its brief dips earlier this year, he noted. Alongside that discounted entry point, the company delivers substantial income to patient shareholders. Management raised the quarterly payout to $1.28 per share earlier this year, driving the dividend yield up to 4.74%. With 54 consecutive years of annual dividend increases, Cramer noted that Kimberly-Clark Corporation (NYSE:KMB) holds the status of a Dividend King, paying investors a generous yield while waiting for the Kenvue transaction to close.Jim Cramer Says Kimberly-Clark's Acquisition of Kenvue Creates a High-Margin Powerhouse Photo by Adam Nowakowski on UnsplashQ2 Earnings Outlook and Tactical Buying StrategyTerms and Privacy PolicyEU DSA contactPrivacy & Cookie SettingsMore Info