Kimberly-Clark (KMB) and Colgate-Palmolive (CL) have a lot in common. They are both giants in the consumer staples sector, and both have raised their dividends for several decades.
Both stocks are Dividend Aristocrats.
The Dividend Aristocrats Excel spreadsheet has 51 stocks with 25+ consecutive years of dividend increases.
Kimberly-Clark has paid dividends for more than 80 years, while Colgate-Palmolive has paid uninterrupted dividends since 1895.
Kimberly-Clark has increased its dividend for 45 years in a row.
Colgate-Palmolive has an even more impressive dividend growth history. It has increased its dividend for 55 years, which also makes it a Dividend King.
The Dividend Kings Excel spreadsheet has just 21 stocks, each with 50+ years of consecutive dividend increases.
Both companies have very impressive dividend growth histories. However, this article will discuss three reasons why Kimberly-Clark may be the better Dividend Aristocrat to own moving forward.
Reason #1: Dividend Yield & Dividend Growth
Kimberly-Clark and Colgate-Palmolive are both impressive dividend stocks, due to their strong business models.
They each dominate their respective product categories, and command high market share, which yields pricing power.
Kimberly-Clark operates three core segments, which are as follows:
Kimberly-Clark manufactures tissues, paper towels, diapers, and other staples products. Its major brands include Huggies, Pull-Ups, Kleenex, Scott, and Cottonelle.
Colgate-Palmolive specializes in toothpaste, soap, and pet food. Its core brands include Colgate, Palmolive, Softsoap, Irish Spring, Tom’s of Maine, Ajax, and Hill’s.
Colgate-Palmolive has a tremendous history of paying dividends. In fact, it has paid a dividend for 122 years.
Source: Bernstein Annual Strategic Decisions Conference, page 106
