Is this too weak or am I dominated enough times to fold this? Also IMO AA-KK has been known to limp re-raise like this.

PokerStars No-Limit Hold'em, $0.25 BB (8 handed) FTR converter on zerodivide.cx

UTG+1 ($24.75)
MP1 ($11.75)
MP2 ($24.65)
CO ($10)
Hero ($39.65)
SB ($16.60)
BB ($20.75)
UTG ($17.85)

Preflop: Hero is Button with K, Q. CO posts a blind of $0.25.
4 folds, CO (poster) checks, Hero raises to $1, 2 folds, CO raises to $2, Hero folds.

Final Pot: $3.35