Proctor & Gamble (PG) is Begining to Look Attractive
Last week I told you Fools that you should begin to buy this dip/correction/depression/whatever you wanna call it. I myself was able to pick up a a few low ball limit orders last Thurs/Fri so I'm pretty happy about that. Anyways, in keeping with the theme of buying right now I rediscovered PG, and I'm starting to become rather interested.
First off I'm not a huge dividend aristocrat and only hold a select few companies that fit that standard definition. However, I definitely think they deserve a place in most portfolios and the argument can be made that they are more important now than ever with the crazy volatile action we've seen the last few years. I'm not suggesting dropping all your hard earned bling bling into a few of this blue "boring as hell" chip sitters but picking up a few shares on the dip might be a good idea. It will reduce volatility and provide a decent cushion via the dividend stream in the event the bottom falls out on the market.
What's so special about PG amongst the million blue chips out there? Well, for starters everything...
I'm not here to bore you with all the financial numbers, trust me they are golden, and you can easily look them up if your Foolish heart desires. Let's just think about this one logically for a moment.
PG is easily one of the biggest and baddest companies out there, sporting a gaggle of name brand, best in class, product lines and a track record that rivals the best. I know I said I'd skip those pesky number things but a few relevant ones are a 2012 PE of ~14 which is on the historical low end for PG. Most importantly it currently yields ~3.5% which is certainly better than the ~0.75% the best online savings accounts are providing these day. Quickly looking at their chart tells us that PG tends to regroup and find support at the $60.00 mark which is about where we are currently.
What's all this jazz add up to aka why you should care? Basically PG is rapidly approaching serious buy status. No it's not going to make you a killing and no you certainly shouldn't be placing all your dry powder in PG. That is just plain boring and not the way to "beat the market". However, PG is a great way to take some volatility out of your portfolio in the current mess of a market that we are stuck with for the time being.
Decent dividend + relatively cheap from historical standards + finding long term support = happy times!
I'm honestly considering picking up some shares in the <$60.00 region if it gets that low. I'd happily park a lot of them in my long term/don't ever touch, section of my portfolio.