This Is a Top Dividend Stock
When it comes to serving income investors, there’s a group
of companies that stand out from the crowd: Dividend Kings.
These are companies that have paid increasing dividends
every year for at least 50 consecutive years. Considering that our economy
moves in cycles, half a century of nonstop dividend hikes is no easy feat.
That’s why, among the thousands of companies trading on U.S. stock exchanges,
there are just 31 Dividend Kings at the time of this writing.
In the near future, I expect one more company to join this
group: Kimberly Clark Corp (NYSE:KMB).
Having been around since 1872, Kimberly Clark is one of the
oldest consumer staples companies in America. Today, it’s one of the most
established players in the paper-based consumer products business.
Headquartered in Dallas, TX, Kimberly Clark has operations in 34 countries, and
its products are sold in more than 175 countries. It’s truly an international
business: last year, the company generated 46% of its net sales outside of
North America.
Kimberly Clark has quite a few iconic brands, such as
“Kleenex,” “Huggies,” “Scott,” and “Cottonelle.” It’s estimated that about one
quarter of the world’s population uses Kimberly Clark’s products. The company’s
brands hold the No. 1 or No. 2 market-share position in 80 countries.
Having an entrenched position in the consumer staples
business means the company can provide a reliable stream of dividends. After
all, consumer staples are household necessities, products that people buy
regardless of where they are in the economic cycle. Simply put, the business is
recession-proof.
In fact, Kimberly Clark managed to pay not only a stable
dividend, but an increasing one.
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