Wednesday, August 10, 2016

Trouble Ahead For Kimberly-Clark Investors?

dividend growth investing, value investing, discounted cash flow analysis
Kimberly Clark Corporation (KMB) Dividend Growth Stock Analysis 2016
As a new dad going through plenty of diapers I couldn't help but look into the maker of Huggies diapers. We're going through an 88 pack box in about a week's time which means lots of cash leaving my pocket and going to the maker, Kimberly-Clark Corporation (NYSE:KMB).
I love consumer staples as part of the core of my portfolio and Kimberly-Clark is a company that I've always had my eye on, but have yet to add it to my portfolio. You can't get much more staple with your product lineup than diapers, Kleenex and paper towels.
Let's examine Kimberly-Clark a bit closer to see what makes them tick and how they've been able to amass a 44 year dividend growth streak. Of course a quality company doesn't mean it will make a good investment so we'll look at the valuation too.
How about that dividend?
First and foremost for dividend growth investors is the quality of the company. If a company consistently grows the dividend payment year after year there's a high likelihood that the company is high quality.
Kimberly-Clark is no exception with 44 consecutive years of increases. A streak that long is enviable and gives them the title of Dividend Champion.
Continue reading the article on Seeking Alpha.

Seeking Alpha - Kimberly Clark Corporation (KMB) Dividend Growth Stock Analysis 2016


  1. No wonder they have never shown up on my screen. Doesn't seem like a good buy until they get things figured out (and the PE drops).

    1. DFG,

      Yeah I like the operations of the company but I'm not a fan of shift in capital structure essentially reducing the shareholders to no stake in the company. Plus FX is likely to continue to be a drag although that shouldn't be much of a problem if it just stays at this level. If the USD continues to strengthen then things will get a lot worse for a lot of the multinationals.

      Thanks for stopping by!

  2. Interesting and timely analysis! I'm long KMB and recently increased my stake to allow option trades. I think I can boost yield to about 5%. But it looks like I'll need to stay aware of several fundamentals that may be deteriorating...