3 Reasons a Family Office Should Own Shares of Kimberly-Clark

Family offices are entities established to invest for wealthy families. The goals of a family office can vary, but are generally to protect the assets, produce current income, and beat the market over the long term. For each of those, Kimberly-Clark KMB is an ideal holding.

Kimberly-Clark is a personal products company with many famous brands names, like Huggies and Kleenex.

It has been detailed how buying the shares of companies like Coca-Cola and Wal-Mart is "faith-based" investing. No matter what happens, investors have faith that the corporate structure of the company will lead it through, rewarding shareholders for the long term. It is the same way for Kimberly-Clark.

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For the most important objective of beating the market, Kimberly-Clark is up more than 25 percent for 2013. That tops the rise for the Dow Jones Industrial Average. Kimberly-Clark should continue to do well, especially with the consumer class increasing around the world. But the total return is even better.

That is due to the dividend yield for Kimberly-Clark.

The average dividend for a member of the S&P's 500 Index is around 1.9 percent. For Kimberly-Clark, it is 3.15 percent. That is also higher than the yield for Wal-Mart and Coca-Cola. Moreover, Kimberly-Clark is a Dividend Aristocrat. To earn that title, a company must have increased its dividend annually for the past 25 years. Not only is current income provided for a family office, it grows every year.

Kimberly Clark also has a low beta, just 0.35.

That means that the share price moves almost two-thirds less than that for the stock market as a whole (which has a beta of 1). A previous Benzinga piece reported on studies from Russell Investments that found that those companies with the lowest betas had the highest returns over the long term. In other words, stocks with lower risks have higher returns: nothing wrong with that for any investor!

As an investment, Kimberly-Clark meets the needs of family offices. Those should also be the goals of other long-term investors, which has proven to be the most rewarding. No matter what the investing style, owning shares of Kimberly-Clark will always be in fashion.