
NYSE:KMB
This summary was created by AI, based on 11 opinions in the last 12 months.
Kimberly Clark (KMB) is viewed as a stable and reliable investment option, largely due to its strong dividend yield, which currently stands at about 4.5% to 5%. Experts note that the company is facing challenges in the market, including a notable decline of around 5.10% this year and a problematic merger with Kenvue that has generated mixed reactions among analysts. While some believe the merger could provide significant synergies and growth potential, the current sentiment is cautious due to the stock's underperformance against key moving averages. Additionally, despite offering iconic brands and being a classic choice for a diversified portfolio, concerns about slow earnings growth—projected at only 4%—are prevalent. Hence, while KMB remains a considered option for conservative investors looking for yield, its market positioning and growth trajectory appear uncertain in the short term.
They delivered an okay quarter. The dividend is 3.5%. You can buy this and put it away while collecting the 3.5. Investors hate these stocks now, like Clorox, though he likes them.
UFS-N vs. KMB-N. UFS-N has a nice balance sheet that is well protected and a dividend north of 4%. It is a well run company with a defensible market share when you look at some of the fast growth markets they have been trying to address like Asia. They have been keen to ramp up their exports to Asia. He would refer UFS-N at these valuations.
Over the last couple of years, they have been working hard on the internal workings of their business. Have been reorganizing, cutting costs and rationalizing. This is as a result that their business is a slow growth one. Thinks they have done a good job in terms of reorganizing. The difficulty is not with what management has done, but is the price that the market is looking for him to pay, close to 20X earnings. He doesn’t understand why a slow growth company like this would demand a 20 multiple.
Great company and wonderful brands. Spinning off their healthcare division, and doing so at a wonderful valuation. Going to have a lot of cash which he sees as being used for share buybacks. This is a company with which you can sleep well at night. If it fell off 5%-10% more, it would be one he would consider.