
NYSE:KMB
This summary was created by AI, based on 11 opinions in the last 12 months.
Kimberly Clark (KMB) is a more conservative investment option, often characterized as a 'steady Eddie' within the consumer staples sector. The company is currently in a transitional phase, highlighted by its upcoming merger with Kenvue, which has drawn mixed reactions from the market despite the potential for strong long-term returns. The stock's performance has been lackluster, down by 5.10% this year, with experts noting its low earnings growth projections. However, many see an attractive dividend yield of around 4.75% to 5%, making it appealing for income-focused investors. Despite its iconic status and potential for synergies post-merger, analysts urge caution given the challenges of increasing competition and current market sentiment.
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.