In 1972, a shareholder of Kimberly Clark collected $0.06 over the course of the year for 1 share of KMB stock. In 2015, such a shareholder would have collected $3.52 per share. Adjusted for inflation, Kimberly-Clark paid the equivalent of $0.27 per share in 1972 dividends. That means you are looking at an actual thirteen-fold increase in the real purchasing power of Kimberly-Clark dividends without taking into account the wealth created by capital gains and dividend reinvestment over the past 43 years.
It has compounded at 14.2% annually since 1972. It’s been of those stocks true to the Benjamin Franklin adage that compounding is the stone that turns all lead into gold. A $10,000 KMB investment in 1972 would be $4,500,000 today, giving you $13,000 per month in dividends. It redefines the holy grail of long-term dividend investment: instead of aiming to collect more in annual dividends than the initial … Read the rest of this article!