Procter & Gamble’s (PG) stock came to life last Friday after P&G chief executive A.G. Lafley revealed plans to shed some 90 to 100 non-core businesses, or more than 50% of its brands. The fact that PG stock has been flat (including dividends) despite Friday’s 3% — and has been virtually dead for more than a year — is just about all you need to know as to why. PG stock has stagnated thanks to slumping sales amid a host of crosswinds, not the least of which have been tied to impact of foreign exchange given P&G’s global exposure, a deep-discount environment and a more value-oriented consumer.
What does this mean for shareholders? After all, PG is famous for shareholder-friendiness thanks to its status as a dependable dividend stock, and plans to buy back some $5 billion to $7 billion of its own shares in fiscal 2015. But that matters little if Lafley is unable to generate more shareholder value in some way — such as streamlining the business. How a company winds up with 90 businesses that are deemed “non-core” is perplexing, but if it’s going to happen, it’ll happen at a company like Procter & Gamble, with a rich, storied history dating back 175 years. In fact, Sanford C. Bernstein analyst Ali Dibadj believes if P&G doesn’t exhibit signs of a turnaround in a year from now, it might need to consider a breakup of the company.
Source: InvestorPlace
Related Articles:
- 6 Stocks With a Sustainable Dividend
- 5 Dividend Stocks Building A Growing Cash Stream
- 9 Dividend Stocks Beating The 4% Rule
- How To Buy Dividend Stocks At The Bottom
- 8 High-Yielding Dividend Aristocrats Not Afraid to Raise Their Dividends
Dividend Growth Stocks News
- 3 Dividend Stocks With Up To 5.7% Yield For Steady Income - Yahoo Finance - 5/21/2025
- Here Are My Top 3 Real Estate Dividend Stocks to Buy Now - AOL.com - 5/21/2025
- 5 Top Dividend Stocks Yielding Over 5% to Buy for Passive Income - MSN - 5/21/2025
- Invest in these top dividend stocks - selfemployed.com - 5/21/2025
- Here Are My Top 3 Real Estate Dividend Stocks to Buy Now - The Motley Fool - 5/21/2025
- Automatic Data Processing Inc. (ADP) Dividend Stock Analysis - 5/16/2025
- Air Products and Chemicals Inc. (APD) Dividend Stock Analysis - 5/9/2025
- Waste Management, Inc. (WM) Dividend Stock Analysis - 5/2/2025
- Wal-Mart Stores, Inc. (WMT) Dividend Stock Analysis - 4/25/2025
- Abbott Laboratories (ABT) Dividend Stock Analysis - 4/18/2025
Procter & Gamble – Will Lafley’s Breakup Plan Jump-Start PG?
Posted by D4L | Wednesday, August 13, 2014 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.