Conglomerates often unlock shareholder value by either divesting a slow-moving segment or spinning off an unrelated segment to concentrate their efforts on their core businesses. Recently, Kimberly-Clark (NYSE: KMB ) revealed its intent to spin-off its health care business to focus on its larger personal care, consumer tissue, and K-C professional segments. The company will make a tax-free distribution of 100% of the new health care company's stock to existing Kimberly-Clark shareholders.
In 2012, the health care business generated $1.62 billion in sales, or 7.7% of total sales, and $229 million in operating profit, which accounted for 8.5% of total profit. Compared to other business segments, the health care business had the lowest return on assets. After spinning off the health care business, Kimberly-Clark can focus on its more profitable segments: personal care, K-C professional, and consumer tissue. The health care spin-off could drive Kimberly-Clark's long-term shareholder value as the company can focus its efforts on growing other consumer businesses. Kimberly-Clark could fit into the long-term portfolio of an income investor with its juicy 3% dividend yield.
Source: Motley Fool
Related Articles:
- 5 Stocks With A Strong Cash To Dividend Coverage
- Dividend Stocks Are My Conviction
- Are The Dividends Safe For These High-Yielding Stocks?
- My 2012 Top And Bottom Performing Dividend Stocks
- 7 Dividend Stocks With Room To Increase Their Payout
Dividend Growth Stocks News
- Top 10 Safest Dividend Stocks in the UK - Insider Monkey - 7/26/2025
- 10 Oversold Dividend Stocks To Buy According to Hedge Funds - Insider Monkey - 7/25/2025
- The 3 Buffett-Backed Dividend Stocks That Beat the Market in 2025 - Yahoo Finance - 7/25/2025
- 5 Dividend Stocks to Hold for the Next 20 Years - Nasdaq - 7/25/2025
- 5 Dividend Stocks to Hold for the Next 20 Years - MSN - 7/25/2025
- Duke Energy (DUK) Dividend Stock Analysis - 7/25/2025
- Chevron Corporation (CVX) Dividend Stock Analysis - 7/18/2025
- Emerson Electric Co. (EMR) Dividend Stock Analysis - 7/11/2025
- Amgen, Inc. (AMGN) Dividend Stock Analysis - 6/27/2025
- W.W. Grainger, Inc. (GWW) Dividend Stock Analysis - 6/20/2025
Kimberly-Clark's Healthcare Spin-off Will Enhance Shareholder Value
Posted by D4L | Wednesday, December 18, 2013 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.