Summary
- Kimberly Clark demonstrates a formidable business.
- In spite of inherent business strengths, the company demonstrates a number of deficiencies.
- Kimberly Clark exhibits vulnerabilities in the company's lack of innovation, high debt load, and various competitive threats.
Source: Google Images
With prominent household brands ranging from Kleenex, Kotex/Poise, Scott, Huggies, and Depend, Kimberly Clark (KMB) remains a cornerstone portfolio holding for many dividend growth investors. KMB stands out as a result of the company's high dividend yield, inelastic demand for the company's products, and extensive consumer defensive product line. In spite of these positive characteristics, Kimberly Clark's business is not without its deficiencies. This article will further explore KMB's underlying business, financials, and growth vectors in order to get a better sense of its current business operations.
