Friday, January 26, 2018

Avoiding KMB

logoKimberly Clark, symbol KMB, is a house hold name.  I am avoiding it.  D/E ratio is quite high.

KMB is starting lay offs and perhaps that will help but they are also increasing dividends, not a good way to husband cash.  KMB's most recent dividend is 3% versus previous dividend increases of 5%.   To their benefit, dividends paid are only 63% of Earnings.

The debt scares me.

Source:  Ycharts D/E ratio for KMG 25.92

M* MoneyMadam

Disclosure:  I do not have a position in KMB.  I lost it to a call buyer at $103 so I have lost out on the upside as KMB is trading at just over $120.

KMB is in my published 2011 portfolio.  I  bought at $65.06 but with the HYH spin off, the portfolio basis is $59.93.