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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: rllee who wrote (36811)	3/1/2010 5:35:03 PM
From: E_K_S	Respond to of 78705

Hi Rllee - Re:Kimberly-Clark Corporation (KMB) I guess it depends on your income and tax situation. I am using money from a GNMA account and want to maintain my effective dividend income. I have no earned income and generate all of my income from dividends and interest. For me, GNMA income is not deemed a qualified dividend where the KMB dividend is considered qualified and taxed at a lower rate. More importantly, I am working on increasing my total portfolio dividend income but also want to have stocks that can provide a "growth" kicker. KMB provides a good compromise and is not subject to foreign tax with holdings too like several of my foreign ADRs. Finally, I look at the PE and my different MA levels to find an acceptable entry "buy" point. I use three 50 period MA levels (days, weeks & months). On my Daily chart KMB is 2% below its 50 day MA, 5% above it's 50 week MA and 2% below it's 50 month MA. The forward PE is 11.3 within my "value" buy range. I like to buy when the stock sells below it's MA. On two of my three MA measures, KMB is still below the MA (ie. Day & Month levels). I have been watching the stock in the $59 area when Paul Senior recommended it (on the Dividend Investment for Retirement board Message 26322757 ). He provided a compelling reason to buy the stock and I really did not want it to run much higher w/o me having at least a small position. EKS