My Favorite Thing About Dividend Stocks

Other than the wonderful compounding affect that will make me a wealthier man when I retire, the thing I enjoy most about dividend stocks is that they allow me to be lazy. Granted I do put in a lot of time evaluating a stock before I invest, but once I buy a quality dividend growth company I can relax while that company's employees work hard to put more and more cash in my pocket.

I was on a nice, relaxing vacation last week. I checked in on the market a couple of times out of curiosity and even checked my work email once, but otherwise my mind was elsewhere. I didn't want to think about work and ruin a relaxing moment. I knew I didn't have to worry about my investments because my money was invested in companies who are working hard on my behalf. And wouldn't you know it, when I returned home I discovered that, KA-CHING!, I got two more fat raises.

A Potential Dividend Growth Future Star

As a dividend growth investor, one of the primary stats I look at when evaluating a stock is the number of annual dividend increases. The longer a stock has been increasing its dividend payment, the more that becomes part of the corporate identity. Typically, it takes a major event within the company (or industry) to prevent the board of directors from continuing to raise its dividend after a long history has been established. This adds a layer of safety that helps me sleep better at night. I am quite certain that Kimberly-Clark (KMB) - 38 years of increases, Wal-Mart (WMT) - 37 years of increases, and AFLAC (AFL) - 30 years of increases, will provide me with a raise once again this year. Companies like these should be at the core of any dividend growth portfolio.  READ MORE

TAGS: [AMGN] [AFL] [INTC] [MSFT] [KMB] [WMT]

Dividend Stock Analysis: Kimberly-Clark Corporation

For my first in-depth dividend stock analysis using my new rating system I chose a stock I have owned for over a year now, Kimberly-Clark (KMB).  You may not be familiar with the company, but I am certain you are familiar with many of their brands.  KMB is a consumer care products company specializing in paper based products.  Huggies, Depends, Cottonelle, and Kleenex are just a few of their popular brands.

As a dividend stock investor I pay attention to who makes the products I use and have become loyal too due to their superiority over competing brands.  As a new father I am very happy with the Huggies diapers, when I reach for a box of tissues at the store I always look for Kleenex brand, and no matter what the price I will ALWAYS buy Cottonelle Aloe & E toilet paper.  Sorry if that last one was too much information, but Cottonelle is the reason I first looked at KMB stock.  Seriously, there is not other TP brand that compares to it.

Rating KMB gave me a good first impression on my new rating system.  When I purchased the stock a year ago the fundamentals were much different than they are today and it would have scored much higher than it does now.  I think this a good sign for my rating system though when using hindsight.  My stock analysis was selected by SeekingAlpha and published this morning and can viewed by clicking the "read more" link below.

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