The Procter & Gamble Company (PG), The Clorox Company (CLX) & Kimberly Clark Corp (KMB): Boring Dividend Stars with Great Dividend Growth Rates

Clorox Not Doing So Well

The Clorox Company (NYSE:CLX) is another entrenched consumer goods company that has a lengthy history of rewarding shareholders with ever-growing dividends. Clorox is currently trading at $87 and yields 3.0%; the company has been raising dividends consistently for 36 years, and has a 5-year DGR of 9.9%.

The Clorox Company (NYSE:CLX) most recently raised its dividend by 11% in May, after reporting slightly negative numbers for FY3Q. Most of the consumer product category had a difficult 1Q13, for several different reasons, and Clorox was no exception. The Clorox Company (NYSE:CLX) blamed most of its disappointing results on weather (a colder quarter resulted in double digit declines in the sales of charcoal versus the prior year) and unfavorable foreign currency exchange rates with some countries in South America.

Again, no sexy new products in the The Clorox Company (NYSE:CLX) stable–just good, solid brands like the eponymous Clorox, Formula 409, Pine-Sol, Tilex and Liquid-Plumr. While the company will likely be able to continue paying its dividend with little difficulty (59% payout ratio), it’s difficult to see much potential for share price appreciation given the low earnings growth.

Try Kimberly-Clark instead

Kimberly Clark Corp (NYSE:KMB) is trading at $96 and yields 3.3%. The company has been raising its dividend every year for 38 years, and sports a 5-year DGR of 7%. The last increase in the dividend was in February, when the company raised it by 9.5%.

The company’s share price has been down since the earnings were announced in May, although I am not exactly sure why. The earnings per share beat analysts’ estimates by over 10%, and were up 19% versus year-ago. Net income also beat the same quarter a year ago by 13.5%. Full year 2013 earnings are estimated to come in at 9% higher than 2012.

Last week TheStreet.com reiterated its Buy rating and gave Kimberly Clark Corp (NYSE:KMB) an A+ score, citing share price growth, EPS growth, increase in net income and a reasonable valuation.

Conclusion

I love The Procter & Gamble Company (NYSE:PG) right now, and I like Kimberly Clark Corp (NYSE:KMB). The Clorox Company (NYSE:CLX) goes on my Watch list.

I’m looking forward to getting my hands on the updated Dividend Champions file from David Fish; it should be released this week. Can’t wait to start sorting and screening with all of his updated numbers for July.

Karin Hernandez has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

The article 3 Boring Dividend Stars with Great Dividend Growth Rates originally appeared on Fool.com.

Karin is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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