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sagitarius84 (< 20)

Procter & Gamble: Long Term View

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May 07, 2010 – Comments (2) | RELATED TICKERS: PG

It is volatile days like yesterday which make me happy that I am a long term dividend investor, not subject to the whims of program traders and trading errors. Relying on the consistent and growing dividends of quality dividend stocks is a sound way to make money in any market, without losing your mind.

Below you could find snapshots of the time and sales of Procter & Gamble (PG) stock from the lows today.





And here is the stock chart from yesterterday:


Compare this chart to the chart of annual dividends. The annual dividend per share has increased by an average of 11% annually, which is below the growth in earnings. An 11% growth in dividends translates into the payment doubling every almost every six and a half years. Procter & Gamble has managed to double its distributions every seven years on average since 1973.

I think that Procter & Gamble is attractively valued with its low price/earnings multiple of 15, a not too high DPR. The current dividend yield is 3.10%. I would be a buyer of Procter & Gamble (PG) and other quality dividend stocks on dips.

 

Relevant Articles:

- Procter & Gamble (PG) Stock Dividend Analysis

- Fixed Income for dividend investors

- Living off dividends in retirement

- 16 Quality Dividend Stocks for the long run

2 Comments – Post Your Own

#1) On May 07, 2010 at 10:15 AM, sagitarius84 (< 20) wrote:

Dividends are a superior investment strategy to invest in the market for the long-term. Buy and hold is not dead, and nor is dividend investing in solid companies!

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#2) On May 07, 2010 at 11:39 AM, MikeMark (29.84) wrote:

Low P/E? 15? Low would be 7 in my book. Maybe 10 because it's such a juggernaught. In general the market seems way out of line. Whoever bought near 40-45 got in at what I might call an attractive buy & hold price.

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