by Amy Calistri, editor The Daily Paycheck
Finding stocks that don't get caught in the fallout of a market sell-off can be difficult; but Kimberly-Clark
) is one that we have had to worry about.
fact, since the sell-off started in late July the stock has been a
star,; while the S&P 500 is down 17.5%, Kimberly-Clark is actually
KMB makes paper-based consumer products like facial tissues and toilet
paper. You probably recognize some of their brands like Kleenex and
Paper products aren't exciting, but they do see consistent demand no matter what the broader economy is doing.
own shares of Kimberly-Clark in our real-money Stock of the Month
portfolio. I originally added the shares back in June of 2010. Since
then, it's been one stock I haven't had to worry about.
the reason is that its "boring" business of selling toilet paper and
tissues also helps power one of the steadiest dividends on the market.
company has raised its dividend like clockwork for the past 39 years.
In fact, in the last 10 years alone KMB has raised its quarterly
dividend by 154%.
Every share bought just five years ago has paid out $12.45 since, providing a 23% gain on dividends alone.
shares of KMB now would lock in a yield of 3.9%. That may not sound
like a lot, but considering that 10-year Treasuries yield less than 2%
and a savings account earns next to nothing, it's not a bad play for
income investors looking for a safe bet with a decent yield.
consider that right now we're seeing high unemployment, concerns about a
recession, and the continuous angst about government deficits. That's a
lot of worry. You might sleep better owning KMB.