Kimberly-Clark Corporation (KMB), together with its subsidiaries, engages in the manufacture and marketing of health care products worldwide. The company operates in four segments: Personal Care, Consumer Tissue, K-C Professional & Other, and Health Care. This dividend aristocrat has paid uninterrupted dividends on its common stock since 1935 and increased payments to common shareholders every for 39 consecutive years.
![](http://2.bp.blogspot.com/-FhrkNJA6zCw/Ty76kYe0TKI/AAAAAAAADT8/4D6HEyRBFU8/s400/KMB2011.gif)
![](http://1.bp.blogspot.com/-9fByQKTpvUI/Ty74umraq-I/AAAAAAAADTw/6pIoKry9R2s/s400/EPS.jpg)
The company’s return on equity has mostly remained above 20% over the past decade, with a few exceptions in 2001 and 2006. Rather than focus on absolute values for this indicator, I generally want to see at least a stable return on equity over time.
![](http://1.bp.blogspot.com/-nFOA9zd1kSc/Ty74eYIHucI/AAAAAAAADTk/Vxc8otJDcGc/s400/ROE.jpg)
![](http://4.bp.blogspot.com/-761saaRNVq4/Ty74KPlz95I/AAAAAAAADTM/jix2wVx-NMM/s400/dps.jpg)
The dividend payout ratio has increased from 37% in 2001 to 59% in 2010. A lower payout is always a plus, since it leaves room for consistent dividend growth minimizing the impact of short-term fluctuations in earnings.
Currently Kimberly-Clark is attractively valued at 17.80 times earnings, has a sustainable dividend payout and yields 3.90%.
Full Disclosure: Long KMB, CL, CLX, PG
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