Dividends4Life: An Incredible Dividend Stock To Hold Off On

An Incredible Dividend Stock To Hold Off On

Posted by D4L | Thursday, October 25, 2012 | | 0 comments »

While Procter & Gamble (NYSE: PG) may set the golden standard for dividend aristocracy, there are good reasons to hold off on this company today. Despite 56 years of dividend hikes, P&G's earnings haven't been able to keep pace in recent quarters, and the company may have a more difficult time meaningfully hiking their payouts each quarter. The company is in need of some earnings adrenaline, but they're looking in the wrong places: internal cost-cutting.

Like any mega-cap company, P&G probably has a lot of fat that they could trim to grow earnings a bit, but you can only go so far with a strategy like that. Instead, the company should be focusing on growing their top line with new high-margin personal care products. It won't be easy, but it may be one of the best ways to sustain their sterling reputation.

Source: Motley Fool

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