I - for one - hope that Kimberly Clark is never bought out
As a dividend income investor, I - for one - hope that Kimberly Clark is never bought out. I just took a position in KMB the day after Warren Buffett bought Heinz. I sold my Heinz stake to get into KMB. I am in KMB for the long-run and like a lot of other dividiend income investors, I am looking to build up years of compounded interest. That's not possible obviously if the company is bought out. I hope that's not he case and KMB is a stand-alone company for decades to come.
This is an extremely predictable company with a compelling dividend, sufficient, sustainable cash flow and I'm glad I took a position here.
If you're looking for some extra dividend income, look at Ferrelgas (FGP) I probably spelled it wrong,but the symbol is right.. It's around $20.00 a share and pays $.50/share/quarter. I think that's 10%.
Also look at Nustar (NS) it pays $1.095/share/quarter. It's around $48.00/share. I think that's around 10% also.
Take a look at those.
I bought 2100 shares of FGP about 2 months ago @ $18,80/share. I should of bought more,.
One of the interesting things about these consumer non-durable income stocks is that they can have explosive growth over a long period and especially when there is a real bull market as in 1982 - 1999. At the same time commodity prices were low and these kinds of stocks use a lot of commodities. Just to note that all long bull markets occur when their is a commodity bear market and when commodity prices are high, stocks suffer. We have been in a commodity bull market since 1999, hence 13 years of the stock market going up and down but over the whole time it has gone no where.
As an example of what can happen, I bought Colgate in the early 1980's. The Yahoo chart goes back to 1980 and the adjusted price for splits was 85 cents. Divide that into today's CL close of 115.71 and CL is up 136 times. I sold my 6 figure gains in the 1990's because of tuition for 3 children. When commodity prices come down (and they will) these stocks will also have great growth. Not as much as then because the companies are much larger; however, they still will do well. By the way, KMB was up about 25X from 1982 to today. All the food stocks and the CLX's and PG's also did well. Every year they increased dividends. Because of that they used to trade at PE's as high as 30 - 40 times earnings.
Look at the Max charts for both cl & kmb and you will see. I currently own both companies. By the way I also like KMB because they have a division in the medical supplies space. Complements my position in the new ABT.
It has treated me okay for about three years now. My broker downgraded it to a hold the day after I bought it so I am holding. LOL. Like you, I am building a portfolio of dividend payers, at 72 I am too old for the growth stuff. I am not at all bored with new all time highs every few days though.