KMB is a leading player in the global health and hygiene category, selling bathroom tissues, diapers, feminine products, and paper towels. Kimberly sells its products directly and distributes them through supermarkets, mass merchandisers, and drugstores, among other outlets. KMB sells name brand products such as:
KMB’s current 10 year dividend growth rate is 8.09%!
In Chapter 8 of The Intelligent Investor, Benjamin Graham, the father of value investing, describes the concept of Margin of Safety:
Any investor, who’s main goal is to preserve capital, should seek, in all his or her investments, a significant difference between the current value of a business and the price in which the business can be bought. This insures protection in case of an unfavorable event and to maximize the investment return if the analysis is confirmed.
In the words of his disciple, Warren Buffett: “Never depend on a good sale. Get a purchase price so attractive that even a mediocre sale will produce good results.
We must be vigilant in maintaining price discipline. We purchase operating companies at 8-10 times Cash Flow.
Conclusion & Valuation
KMB has consistent rising dividends and stable cash flow
Buy up to Valuation = $41.20