Kimberly-Clark: What More Can We Ask?

This company is paying a dividend of 4% and has a public commitment to increase its dividend payout this year. What more can we ask from Kimberly-Clark Corporation (NYSE: KMB)?

The firm has increased sales this year (on a trailing 12 months basis) and sports a much lower PEG and P/E than most of its peers. Except for the last two weeks this very low beta gem has outpaced its sector for almost every time period for the past six months.

Although the firm derives over half its revenue from outside our boarders, it has not forgotten our native soil, and I use the word soil with tongue firmly in cheek.

I read last week a piece by Tanya Irwin in Marketing Daily and will share some of the highlights. A warning that you may not want to read on unless you have children. So I will disclaim now that I am long the stock.

Kimberly-Clark is putting a new spin on "The Potty Dance" with new music, lyrics and a cross-country tour for its Pull-Ups training pants brand.

The Neenah, Wis.-based company teamed with children's musician Ralph Covert of Ralph's World, to put some fun in the stress-inducing process of potty training.

Singing and dancing can be a huge motivator for kids and can help inspire little ones to learn, according to the Pull-Ups brand. Covert encourages kids to ditch their diapers and "do what big kids do." He'll be featured at Pull-Ups Potty Dance parties cross-country in Chicago, Minneapolis, Seattle and Orlando.

The company is pulling out (or is it up in this case) all the marketing tools out of the new age kit: social media, donations, viral, and live events.

Pull-Ups brand is providing drop-off areas for party attendees to ditch their unused diapers and donate them to local women and children centers in the area.

To bring the celebration into the home, Pull-Ups brand is also teaming up with Irvington, N.Y.-based House Party, an experiential marketing company, to host 5,000 simultaneous "Do The Potty Dance" in-home parties with Moms from coast to coast. During the gatherings, Moms and their kids will learn the dance and share potty-training tips with one another so everyone leaves the party one step closer to ditching the diapers for good.

The company is doing a lot of things right. It boasts a Return on Equity in the trailing 12 months of 39.36%. Some of this marketing sounds pretty hokey, but when your kid is going through this stage of growing up it is easy to get caught up in it all and unless you are part of a solid community, it can be pretty isolating.

Kudos to KMB for making growing up a little smoother for kids, involving parents, creating community and all the while enhancing shareholder value.

Disclosure: Mr. Corn is Chief Investment Officer – Equities of Beacon Trust Company. Through various equity strategies under his supervision he is currently long KMB.