Dividends4Life: Procter & Gamble Stock Appears to Be Getting a Little Rich

If you were lucky enough to buy Procter & Gamble (NYSE:PG) last June at its 52-week low of $73.60, today you’re sitting on a 48% unrealized profit. That’s an impressive haul, particularly from Procter & Gamble stock, which doesn’t necessarily have a high-growth reputation. In fact, the PG stock price has performed so well that shares have now exceeded their all-time high of $108.68. If you’re a momentum investor, PG has gained almost 9% in the last three months alone. And if you’re dividend investor, Procter & Gamble stock still yields an attractive 2.8%.

However, if you’re not a buy-and-hold investor and are sitting on profits, you might want to take them. And if you’re contemplating buying because the PG stock price is on a roll, you might want to think twice. Here’s why. Trading at 24.1-times FCF with very little in the way of sales or earnings growth, here’s the plain truth: the PG stock price is anything but cheap. However, the fact that it’s doing a better job converting net income to FCF than in the past suggests it’s probably fairly valued at this point or maybe a little on the expensive side.

Source: InvestorPlace

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  1. Dividend Diplomats // June 30, 2019 at 8:46 AM

    Agree. It is a little expensive today. I'll definitely wait to add to my position until the valuation falls a little. For now, it is all about that DRIP


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