Kimberly-Clark (KMB) Shares Cross 3% Yield Mark

Looking at the universe of stocks we cover at Dividend Channel, in trading on Thursday, shares of Kimberly-Clark Corp. (KMB) were yielding above the 3% mark based on its quarterly dividend (annualized to $3.24), with the stock changing hands as low as $107.75 on the day. Dividends are particularly important for investors to consider, because historically speaking dividends have provided a considerable share of the stock market's total return. To illustrate, suppose for example you purchased shares of the S&P 500 ETF (SPY) back on 12/31/1999 — you would have paid $146.88 per share. Fast forward to 12/31/2012 and each share was worth $142.41 on that date, a decrease of $4.67/share over all those years. But now consider that you collected a whopping $25.98 per share in dividends over the same period, for a positive total return of 23.36%. Even with dividends reinvested, that only amounts to an average annual total return of about 1.6%; so by comparison collecting a yield above 3% would appear considerably attractive if that yield is sustainable. Kimberly-Clark Corp. (KMB) is an S&P 500 company, giving it special status as one of the large-cap companies making up the S&P 500 Index.

In general, dividend amounts are not always predictable and tend to follow the ups and downs of profitability at each company. In the case of Kimberly-Clark Corp., looking at the history chart for KMB below can help in judging whether the most recent dividend is likely to continue, and in turn whether it is a reasonable expectation to expect a 3% annual yield.

START SLIDESHOW:
Click here to find out which 9 other dividend stocks just recently went on sale »

KMB+Dividend+History+Chart

According to the ETF Finder at ETF Channel, KMB makes up 2.19% of the Consumer Staples Select Sector SPDR Fund ETF ( XLP) which is trading lower by about 1.5% on the day Thursday.

null

More from Stocks

Earnings Season Is Simply Out of Control Madness - How Are Surviving?

Earnings Season Is Simply Out of Control Madness - How Are Surviving?

Key Numbers for Investors to Watch as Amazon, Microsoft and Intel Report Results

Key Numbers for Investors to Watch as Amazon, Microsoft and Intel Report Results

Facebook, Amazon, Microsoft and Ford - 5 Things You Must Know

Facebook, Amazon, Microsoft and Ford - 5 Things You Must Know

Global Stocks Mixed, U.S. Futures Soften as Earnings, Oil, Rates Cloud Sentiment

Global Stocks Mixed, U.S. Futures Soften as Earnings, Oil, Rates Cloud Sentiment

3 Things We Just Learned About Chip Stocks -- and It's Not All Bad News

3 Things We Just Learned About Chip Stocks -- and It's Not All Bad News