Kimberly Clark is Down 20% From Its 52-Week High. Is the Dip Worth Buying?
Kimberly Clark is a consumer staples Dividend King with a 5% yield, but it is also undergoing a major business transition.
Overview
Kimberly Clark (NASDAQ: KMB) has increased its dividend annually for over five decades, making it a Dividend King. That's a huge achievement. It also offers an attractive 5% dividend yield, with its stock price having fallen more than 20% from its 52-week high as of this writing. Should you jump on the opportunity to buy it, or are you better off staying on the sidelines? The answer may depend on your tolerance for risk.
Right now, Kimberly Clark is largely a paper products company, making things like toilet paper, diapers, and feminine hygiene products. These are necessities, so the business has a strong foundation. That said, it competes directly with Procter & Gamble (NYSE: PG), one of the world's largest consumer staples companies. This comparison is important in two ways.
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Originally published at www.fool.com.