This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

5 Consumer Stocks Hedge Funds Love


Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

Tissue and paper towel maker Kimberly-Clark (KMB - Get Report) owns more than a few household name brands itself, including Kleenex, Scott and Huggies. The firm is one of the biggest names in consumer health and hygiene products, selling the consumable items that consumers need to keep stocked-up in their homes.

Unfortunately for KMB, when times get tough consumers tend to stock up the off-brand competitors. That means that Kleenex tissues often get traded down for store brand tissues, a product that consumers are more willing to switch to due to comparatively small differences between the two. KMB has been working to combat that poor stickiness by offering more differentiation between its offerings and the bargain brands. That's helped plug the holes in its sales, but ultimately, lower input costs are the critical factor that's been giving Kimberly-Clark breathing room on its income statement in 2012.

With net margins pushing back up towards double-digits again, this stock is throwing off mountains of cash and a hefty dividend payout that currently yields 3.6%. In turn, hedge funds ramped up their holdings of KMB by 25% in the second quarter, picking up 1.11 million shares of the firm.

Like most of the names that made this list, Kimberly-Clark is a defensive income-paying stock that's a solid core holding for investors in this market.

To see these stocks in action, check out the at Hedge Funds' Favorite Consumer Stocks Q2 portfolio on Stockpickr.


Follow Stockpickr on Twitter and become a fan on Facebook.

-- Written by Jonas Elmerraji in Baltimore.
At the time of publication, author had no positions in stocks mentioned.

Jonas Elmerraji is the editor and portfolio manager of the Rhino Stock Report, a free investment advisory that returned 15% in 2008. He is a contributor to numerous financial outlets, including Forbes and Investopedia, and has been featured in Investor's Business Daily, in Consumer's Digest and on
6 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
ADM $39.94 0.00%
DF $17.23 0.00%
KMB $125.19 0.00%
PG $80.12 0.00%
WMT $66.87 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs