I increased my position with the purchase of more shares of Kimberly-Clark Corporation (KMB)
10 shares @ $105.11 on 10/31/2018.
This increases my forward 12-month dividend income by $40 to a total of $6,840.40
I also updated my portfolio page to reflect the change.
Kimberly-Clark has been increasing its dividend for the past 46 years. Which is outstanding. However, the dividend growth rate as slowed down. For example, the 10-year dividend growth rate sits at 6.7% and the 5-year dividend growth rate is at 6.5%. The most recent dividend increase happened in January of this year which was an increase of only 3.1%.
Sometime in the first quarter of next year, we should see another increase from this company. I am hoping something over 4%.
The reason why I bought more shares of this company is that I see this as a forever company. Also, they sport a very safe dividend of 62% based on 2017 adjusted earnings. This year they are expected to increase there adjusted earnings by 7%. This will lower the dividend payout very nicely, and allow the company to increase the dividend over 4%.
I find KMB to be fairly valued, and I recommend it as a HOLD at this time. I have a fair value price at $101.24. This means that KMB is 10.5% Overvalued based on today’s price of $113.19 (12/03/2018).
What do you think of the company? Plan on owning it or already do? or why not?
Image by Sira Anamwong at FreeDigitalPhotos.net