PG..........

FinanceDude

FinanceDude

Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Joined
Aug 3, 2006
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Looking at Proctor and Gamble. No showing as much weakness as other stocks. I am looking to accumulate in the $54-$55 range if it hits there.

This market is not for the faint of heart, but I have had success with PG over the years...........
 
PG is one of my largest holdings. Excellent balance sheet, very consistent earnings and dividend growth, a long history of good capital management. I am very comfortable with this stock.
 
FinanceDude said:
Remember how Peter Lynch went to the mall with his daughter and wife and found stocks he researched and looked to buy?

I used to own a LOT of MO, when they spun Kraft off I trimmed the MO and balanced it with Kraft.......:)
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You might want to sell MO. I own some. Probably going to buy a little KFT too.:)
 
Dawg54 said:
You might want to sell MO. I own some. Probably going to buy a little KFT too.:)
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I should, but my cost basis is $3.00. Probably after Obama is done, my cost basis will equal the value of MO..........:(
 
Dawg54 said:
Hard to argue with it's track record. How about Kraft? Nice dividend.
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I know WEB likes it, but I look at it every few weeks and see $20B in debt and $2-3B in profit and I stop thinking about it. I know all the food processors and consumer product companies carry a fair amount of debt, but KFT is on the high end of the range for those sectors.
 
harley said:
What happened to "I'm 100% out of the market forever?" :angel:
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I never said I sold all my stocks. I said when I recoup most of my losses, I will go 100% cd's. Long way from there. Maybe never. :(

KFT is a pretty defensive stock and a 4% dividend is not bad. I owned it last year and sold it for a 15% gain. Probably my only bright spot for the year.
 
I know, just ragging on ya. I'm glad to see you not banging your head and guzzling cheap brews. :flowers:
 
harley said:
I know, just ragging on ya. I'm glad to see you not banging your head and guzzling cheap brews. :flowers:
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I've cut down on the head banging.....but still taking my med's.
img_775247_0_0ff25d720d269205de68fc80b5a9b3e4.gif
 
Well Proctor and Gamble is having a rough year so far and today has fallen to where it now pays slightly more than 3 percent as a dividend.

As this is as cheap as P&G in quite a while it sure is tempting to buy, but I will still hold out for $45.75 for a 3.5 percent yield. It would still not surprise me if the holy trinity of the DJIA (PG, KO, JNJ) all fell eventually to a 5 percent yield, but these are among the most reliable of dividend payouts available in the stock universe.
 
Running_Man said:
Well Proctor and Gamble is having a rough year so far and today has fallen to where it now pays slightly more than 3 percent as a dividend.

As this is as cheap as P&G in quite a while it sure is tempting to buy, but I will still hold out for $45.75 for a 3.5 percent yield. It would still not surprise me if the holy trinity of the DJIA (PG, KO, JNJ) all fell eventually to a 5 percent yield, but these are among the most reliable of dividend payouts available in the stock universe.
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You may be right on PG. Down to $52.5 today. KFT down almost 10% today. No place to hide in stocks. :banghead:
 
Proctor and Gamble is really just a dividend hold. Over the long run the dividend should grow a little faster than inflation. I view this as a corporate I-bond+ stock not tied to the CPI but a truer growth of the economy dividend. Purchasing at a reasonable price means as long as the dividend is secure, and that certainly is true for P&G right now price movement should really be a non-issue. Based on what I can remember of your portfolio draw the P&G dividend at 3 percent should be above your withdrawl rate of your overall portfolio.

If I owned it right now I certainly would not sell, but the day it hits 3.5 percent yield, if it does get there, I am buying.

However I think Finance Dude's suggestion is also always appropriate as well.
 
Running_Man said:
Proctor and Gamble is really just a dividend hold. Over the long run the dividend should grow a little faster than inflation. I view this as a corporate I-bond+ stock not tied to the CPI but a truer growth of the economy dividend. Purchasing at a reasonable price means as long as the dividend is secure, and that certainly is true for P&G right now price movement should really be a non-issue. Based on what I can remember of your portfolio draw the P&G dividend at 3 percent should be above your withdrawl rate of your overall portfolio.

If I owned it right now I certainly would not sell, but the day it hits 3.5 percent yield, if it does get there, I am buying.

However I think Finance Dude's suggestion is also always appropriate as well.
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Yeah, I'm just watching it for now. Maybe I should look into buying some pharmaceutical companies like Coors or Bud. :-\
 
Bud never got cheap enough for me, but I got a good buy on Diageo not too long ago. And their beer is better too! :angel:
 
Dawg54 said:
Yeah, I'm just watching it for now. Maybe I should look into buying some pharmaceutical companies like Coors or Bud. :-\
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Remember when Pfizer was the dividend-paying pharma that ERs bought to offset their rising health-insurance premiums? I remember a Canadian investor in the mid-90s and Greaney both specificially mentioning its "good as gold" payout...

At this point PG would be more likely to signal the bottom by being the last stock to cut their dividend.
 
Nords said:
Remember when Pfizer was the dividend-paying pharma that ERs bought to offset their rising health-insurance premiums? I remember a Canadian investor in the mid-90s and Greaney both specificially mentioning its "good as gold" payout...

At this point PG would be more likely to signal the bottom by being the last stock to cut their dividend.
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Actually this would have worked out as a good strategy and you would in many years had multiple rounds of golf paid for by the dividends. Actually even with the 50 percent dividend cut Pfizer dividends are outpacing healthcare premium inflation.

http://profile.kff.org/insurance/upload/7692.pdf

http://www.valueline.com/dow30/f7040.pdf

The average dividend was only 2 percent in 1995 so you would have needed 1177 shares to pay a 200 premium in January of 1995. By 1998 the yield was only .7 percent (of course the stock price was up 300 percent in 4 years from 1995 and would have been a good time to move from a growth play to a dividend play stock).

But still anyone who bought the stock at the start of 1995 is still sitting on a 129 percent capital gain and a dividend 277 percent greater than at the original purchase, taking into consideration the most recent 50 percent cut to 64 cents annually per share.

Based on the Kaiser Family Foundation data for health care premium inflation if you were paying 200 annually for health care insurance and had funded it by buying Pfizer in January of 1995 you would have seen your premiums rise to $522 while the Pfizer dividend after it's most recent cut would have reduced you payout to $753.28. There would never have been a year that the dividends would not have covered the healthcare.



YearHealthcare PremiumInflationPfizer DividendsAnnual RateShares Excess of Div

1995 200.00 ----------------------------------- 200.09 $ 0.17 1177 $ 0.09

1996 207.00 3.5%----------------------------235.40 $ 0.20 1177 $ 28.40

1997 209.07 1.0%----------------------------270.71 $ 0.23 1177 $ 61.64

1998 214.30 2.5%----------------------------294.25 $ 0.25 1177 $ 79.95

1999 222.87 4.0%----------------------------364.87 $ 0.31 1177 $ 142.00

2000 235.13 5.5%----------------------------423.72 $ 0.36 1177 $ 188.59

2001 253.94 8.0%----------------------------517.88 $ 0.44 1177 $ 263.94

2002 281.87 11.0%--------------------------612.04 $ 0.52 1177 $ 330.17

2003 318.23 12.9%--------------------------706.20 $ 0.60 1177 $ 387.97

2004 362.46 13.9%-------------------------800.36 $ 0.68 1177 $ 437.90

2005 403.06 11.2%------------------------894.52 $ 0.76 1177 $ 491.46

2006 440.14 9.2%------------------------1129.92 $ 0.96 1177 $ 689.78

2007 474.03 7.7%------------------------1365.32 $ 1.16 1177 $ 891.29

2008 502.95 6.1%------------------------1506.56 $ 1.28 1177 $ 1,003.61

2009 521.56 3.7%------------------------753.28 $ 0.64 1177 $ 231.72
 

Attachments

  • pfizer for healthcare.txt
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Welcome back in order to PG into my humble portfolio of dividend stocks. The break of 3.5% in PG seemed to trigger a rush down in the DOW but I switched some loser S&P500 funds from my Feb buy for P&G this afternoon at 45.25. Been waiting over a decade for P&G to get back to this kind of valuation, could keep falling in yield gosh I hope it doesn't end at 5 percent yield, 3.5 is ok by me.
 
depends on consumers

the last decade P&G made money by selling 1/10 the product in a nice convenient easy to use package compared to a bottle or whatever in the old days. if consumers keep buying good for them. if people without jobs go back to the old sizes then bad for P&G
 
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