Kimberly-Clark – Essential Household Products

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A global leader in personal care products, Kimberly-Clark as a company isn’t really a household name, but many of their products are. Brands such as Andrex, Huggies, Kleenex and Kotex are known worldwide and used by millions. These essential everyday products are sold in 175 countries and are the number one or two brand in 80. The professional division also provides products to workplaces around the world. Kimberly-Clark has a fantastic dividend record having increased the payout for 51 years. The current yield is just under 4%. The mix of everyday essential products for domestic and commercial use and a growing dividend make this an attractive addition to any long term investors portfolio. I have added some to my ISA and as with my other holdings will be reinvesting the quarterly dividends into the company.

Unilever – Top Brands – 4% Dividend

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With around 450 brands in its worldwide portfolio and 80 in the U.K. many Unilever products are household names found across the country. It’s very likely that everyone has at some point bought one of their products. Brands include Ben & Jerry’s, Dove, Knorr, Persil and one of my favourite drinks Bovril. Despite this, performance has been disappointing over the last few years. The shares have drifted aimlessly, now £14 lower than they were in 2019.

On the 1st July this year the company gained a new CEO, Hein Schumacher. He has taken on the task of reversing the companies fortunes. His focus on the 30 “Power Brands” which represent 70% of turnover is part of the growth plan. The recently agreed sale of Elida Beauty which comprises 20+ beauty and personal care brands is also part of this. Dollar Shave Club was also offloaded to a private equity firm. A slimmed down brand portfolio focusing on best sellers should drive growth long term. In the mean time the shares yield around 4% and distribute dividends quarterly. A quality stock worth tucking away for the long term.

Coca Cola – 103 Years Of Dividends

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A long time favourite of Warren Buffet and a significant part of Berkshire Hathaway’s listed investments. This is arguably a core holding in any value investors portfolio. Coca Cola is sold in almost every country and is one of the top ten most valuable brands in the world. In addition to the classic Coca Cola, which was created in 1886, the company sells many other hugely popular products such as Dr. Pepper, Sprite and Fanta. For those looking for healthier options there are sparkling waters, teas and energy drinks. This large portfolio of iconic brands provides a formidable moat, making it incredibly difficult for competitors to muscle in on their territory. Richard Branson tried this in the 90’s with the launch of Virgin Cola, but it ultimately failed.

Dividends have been paid quarterly since 1920 and have been increased for 59 consecutive years. Yield is a respectable 3.13%. At the current price of $58.50 I believe the shares offer good value. I have opened a position and will likely add to it should the price dip in the coming months.