Dividends4Life: There Are Compelling Reasons to Buy PG Stock Even After a Strong Rally

Dividend Growth Stocks News

Procter & Gamble (NYSE:PG) is a classic dividend stock for the portfolio. However, investors might be cautious on fresh exposure to PG stock after a rally of 31.8% in the last year. I am of the opinion that valuations still remain at sane levels and PG stock is worth considering.

I also believe that as the probability of a global recession in the next 12-18 months increases, there will be a flow of funds into relatively defensive stocks like Procter & Gamble. The stock has a beta of 0.4 and sells products that are more of necessity than luxury. The company’s CFO, Jon Moeller, does acknowledge that consumers can possibly shift to cheaper products during a recession. However, the company plans to counter that risk by focusing on “creating a superior product worth the investment.” Therefore, valuation is not a concern and Procter & Gamble is likely to remain relatively insulated from an economic downturn.

Source: InvestorPlace

Related Articles:
- 3 Exceptional Dividend Growth Stocks With Quality Financials
- Three Keys For Successful Dividend Growth Investing
- Are You Patient Enough To Be Wealthy? These 6 Dividend Stocks Will Help You Wait
- 5 Dividend Stocks With A Quick Payback
- 3 High-Rated Dividend Stocks With Above Target Returns

________________________________________________________________

0 comments

Post a Comment

Note: Only a member of this blog may post a comment.