$62.56
-0.63 (-1.00%)
The Procter & Gamble Company (PG)
CAPS Rating:
The Company provides consumer goods products to improve the lives of the world's consumers. It is organized into three Global Business Units: Beauty and Health; Household Care; and Gillette GBU.
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Yield 2.6%. Solid. Products from PG in my bathroom: Mach 3 razor, Crest toothpaste, Vicks vapo rub. I occasionally have pringles in my food closet, and duracell is my battery of choice. Things i don't have but you might are always, head and shoulders, pantene, oil of olay, tide, dawn, downey, pampers. This company has been around for 171 years. That means it didn't just survive the depression and 2 world wars, but also multiple depressions in the 1800s. I can't find exact numbers, but from the 10Q summary: "Our products are sold in more than 180 countries primarily through mass merchandisers, grocery stores, membership club stores and drug stores. We have also expanded our presence in "high frequency stores," the neighborhood stores which serve many consumers in developing markets." I believe at least 50% of all sales are outside the US and this number is likely higher. Expect PG to keep growing steadily over the next 10 years.
I like PG. Stable company. Good products. Reasonable yield. Will keep its stock value and will move up slowly but surely.
33% rise in quarterly EPS for their 4th quarter. I think out of all the things I've been really good at calling, it's understanding and investing in the mega-cap blue chip dividend payers. PG it seems to me is one of those companies that will have some minor downs and moderate ups with continued long-term trend towards growth, their management is excellent and the company has been through far worse times than the current economy. I'm giving myself a pat on the back for really nailing this one, got it within 3% of it's bottom which is pretty damn good if I do say so myself.
Don't forget the ongoing effects of the Gillette acquisition. I figured the full benefits of this merger would take up to five years, so I believe we still have about 2 years of uptrends to expect as markets expand, shelf space increases and duplicate costs are eliminated.
I agree with everything you mentioned but, see this company as more a proxy for the market not, an alpha producer...good for your real portfolio / bad for your CAPS portfolio. That being said, in troubled economy consumer staples will always perform, so on a short to mid-term basis probably a decent CAPS stock but, unlikely to deliver a catalyst pop.