Thursday, May 6, 2010

Procter & Gamble (PG) Time and Sales

It is volatile days like today 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 today:



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.
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2 comments:

  1. I gotta hand it to you. You really do some rock solid homework on these investments.

    I've heard a lot of good things about P&G as an individual long term stock, but given me being green to the entire ordeal, I was left wondering what it was that made them so great.

    This puts my pieces to the jigsaw puzzle though. They seem like a fantastic conservative stock. A double growth every 6 years in dividends you say? That's pretty impressive..

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  2. What a crazy day. I just added PG to my portfolio last week for the reasons that you laid out in this post. I appreciate your insight and am glad to be on board with safe dividend stocks.

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