Dividends are central to my investment philosophy. They not only lower portfolio volatility but also provide a continued source of funds for reinvestment. In that vein, I continually monitor a small list of companies that have consistently raised dividends for at least 25 years. When these companies are weak technically, it’s an appropriate time to examine them as a potential addition to a portfolio. Kimberly Clark is currently looking attractive from a technical perspective:
The weekly chart (top chart) shows a double-top in the first half of this year followed by a consistent downtrend. Weekly prices are currently approaching the 200-week EMA. The daily chart (bottom chart) is very weak; it is below the 200-day EMA and recently gapped lower.
According to their latest 10-K, KMB has three lines of business:
Personal Care brands offer our consumers a trusted partner in caring for themselves and their families by delivering confidence, protection and discretion through a wide variety of innovative solutions and products such as disposable diapers, training and youth pants, swimpants, baby wipes, feminine and incontinence care products, and other related products. Products in this segment are sold under the Huggies, Pull-Ups, Little Swimmers, GoodNites, DryNites, Kotex, U by Kotex, Intimus, Depend, Plenitud, Poise and other brand names.
Consumer Tissue offers a wide variety of innovative solutions and trusted brands that touch and improve people’s lives every day. Products in this segment include facial and bathroom tissue, paper towels, napkins and related products, and are sold under the Kleenex, Scott, Cottonelle, Viva, Andrex, Scottex, Neve and other brand names.
K-C Professional (“KCP”) partners with businesses to create Exceptional Workplaces, helping to make them healthier, safer and more productive through a range of solutions and supporting products such as wipers, tissue, towels, apparel, soaps and sanitizers. Our brands, including Kleenex, Scott, WypAll, Kimtech and Jackson Safety, are well-known for quality and trusted to help people around the world work better.
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