It Is No Longer a Gamble Investing in Procter & Gamble: Part 5


Procter & Gamble (PG) is a Dividend Aristocrat, Champion and blue-chip stalwart that has increased its dividend for 62 consecutive years. Therefore, it should be no surprise that this blue-chip stalwart has traditionally commanded a higher valuation than most stocks. Over the past couple of decades at least, it has been a very rare occurrence to be able to invest in this company at a valuation that would be considered reasonable or attractive. In fact, prior to current time, it took the Great Recession of 2008 and 2009 to bring Procter & Gamble down to reasonable valuation levels.

To put Procter & Gamble’s current valuation into perspective, this blue-chip can be purchased today with a 3.7% current dividend yield which is hovering around the highest it has been over the past two decades. Furthermore, Procter & Gamble appears attractively valued over virtually every rational valuation metric that prudent value investors might consider.

Procter & Gamble at a Glance

As the following screenshot clearly depicts, Procter & Gamble is a formidable company that has been in business for 180 years. The company sells products in more than 180 countries, and as previously stated, has increased their dividends for 62 consecutive years. Procter & Gamble is a diversified consumer staples company with businesses covering 10 product categories generating over $65 billion in annual sales.

The following screenshot provides a breakdown of Procter & Gamble’s net sales and earnings over each of their five reportable segments. Additionally, the company’s products are quality leaders in each of their categories and subcategories.