Name: Dividend Payout Ratio

Definition: The dividend payout ratio shows what portion of the company’s profits are paid out to shareholders as dividends. If it’s 60%, that means 60% goes to shareholders, while 40% is kept inside the business for future growth. High payout ratios reward shareholders today. Lower payout ratios suggest the company believes it can earn even more by reinvesting in itself.

Interpretation:
• In '2021', KMB's dividend payout ratio was 0.84, demonstrating the portion of earnings distributed as dividends. Industry average for Containers/Packaging in '2021' stood at 0.53.
• In '2022', KMB's dividend payout ratio was 0.82, demonstrating the portion of earnings distributed as dividends. Industry average for Containers/Packaging in '2022' stood at 1.25. Industry average increased by 0.72 compared to previous year.
• In '2023', KMB's dividend payout ratio was 0.85, demonstrating the portion of earnings distributed as dividends. Industry average for Containers/Packaging in '2023' stood at 0.58. Industry average declined by 0.67 from previous year.
• In '2024', KMB's dividend payout ratio was 0.75, demonstrating the portion of earnings distributed as dividends. Industry average for Containers/Packaging in '2024' stood at 1.23. Industry average increased by 0.64 compared to previous year.
Overall, KMB's dividend payout ratio has consistently declined during the past 4 years.

Formula: Dividend Payout Ratio = Dividends / Net Income

Good Range: Ranges widely; 30%-60% common for mature firms.