Next Stock Purchase – Kimberly-Clark Corporation (NYSE: KMB)

Kimberly-Clark Corporation, together with its subsidiaries, engages in the manufacture and marketing of various health care products worldwide.  It offers its products primarily for household use under various brand names, including Huggies, Pull-Ups, Little Swimmers, GoodNites, Kotex, Lightdays, Depend, and Poise.  The Consumer Tissue segment offers facial and bathroom tissue, paper towels, napkins, and related products for household use under the Kleenex, Scott, Cottonelle, Viva, Andrex, Scottex, Hakle, and Page brands.

The company has almost $20 billion in annual sales and $2 billion in annual profits, which are pretty healthy margins.  Although Kimberly-Clark is a mature and slow growing company, but their products will always be in demand and thus I believe the company is a solid long-term buy for my portfolio.

The stock pays a very healthy above average 4.3% dividend, which I feel will protect me from significant downside risk, it has a 4-star Motley Fool CAPS rating, and is a consumer staple – which means can be relied on to sell their wares through thick and thin, good times and bad.  Kimberly Clark has a long history of increasing dividends and have increased them about 8% annually over the past 5 years.  The stock seems to be fairly valued with a current P/E ratio of 15, so I don’t expect a substantial upside potential, but I also don’t expect much downside risk either, and will be satisfied with slow moderate growth of the stock price.  There is some risk on margins with increasing commodity prices, but can be offset to some extent through increased pricing.  Kimberly-Clark just reported less than steller earnings this past Monday and the stock fell , which I feel presents a good opportunity to buy.

Kimberly-Clark currently trades at $65.58 per share.

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About runninginspired

I’m in my mid-40s and have been running for about 19 years. I have finished 24 marathons with a personal best time of 3:04. I currently reside in San Diego, CA. I enjoy running since it keeps you honest and will give back what you put into it. Work hard, but smart, and good results will eventually follow. I like to experiment with training plans, gadgets, shoes, and nutrition to find what works for me. The primary purpose of this blog is to document my training and thoughts about running in my ongoing quest to improve my fitness and health.
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