It has only been a few weeks since my last purchase, but for whatever reason, it feels like it has actually been a lot longer (like months rather than weeks). In any event, today I initiated a new position in Procter and Gamble - it was only a matter of time.
Purchased: 32 shares x $80.60 = $2,579.20 (+$4.95 commission)
Dividend Income: $88.32 ($2.76/sh annually; paid quarterly in Feb, May, Aug, and Nov)
P/E ratio: 21.6 (vs. S&P @ 25.49)
Debt to capital < 50%: Yes, 38.5%
Interest coverage ratio of at least 3:1: Yes, 32.3x
S&P and/or Moody's credit rating of BBB+/Baa1 or better: Yes, AA-
Current dividend yield > 1.5x S&P yield: Yes, 3.4% vs. S&P @ 1.89%
Payout ratio < 60% (or <85% for utilities): No, 72.8%
Dividend King or CCC classification: King (61+ years of dividend increases)
Comments: So it is not often that you can find a stalwart franchise selling at a fantastic valuation so if you are going to own and grow your ownership in such a franchise you'll need to be willing to accept a fair price for such a company and today I believe I did just that. And when those infrequent opportunities come where you buy a great company at a franchise for a great price, you have to be willing and able to do just that even when others may be running in the opposite direction so to speak. Those who follow P&G will know that the company has been shedding many of it lesser known brands and focusing a core portfolio of products within 10 different categories with about 65 brands. During this reorganization, for a lack of a better term, the company's dividend growth has been lackluster in recent years and yet the payout ratio is a bit higher than I would typically like to see.
Company Profile
The Procter & Gamble Company provides branded consumer packaged goods to consumers in the United States, Canada, Puerto Rico, Europe, the Asia Pacific, Greater China, Latin America, India, the Middle East, and Africa. The company's Beauty segment offers hair care products, including conditioners, shampoos, styling aids, and treatments; and skin and personal care products, such as antiperspirant and deodorant, personal cleansing, and skin care products. It markets its products under Head & Shoulders, Pantene, Rejoice, Olay, Old Spice, Safeguard, and SK-II brands. The company's Grooming segment provides shave care products comprising female and male blades and razors, pre- and post-shave products, and other shave care products; and appliances that include electric razors and epilators under the Braun, Fusion, Gillette, Mach3, Prestobarba, and Venus brands. Its Health Care segment offers toothbrushes, toothpastes, and other oral care products; and gastrointestinal, rapid diagnostics, respiratory, vitamin/mineral/supplement, and other personal health care products under the Crest, Oral-B, Prilosec, and Vicks brands. The company's Fabric & Home Care segment provides fabric enhancers, laundry additives, and laundry detergents; and air care, dish care, P&G professional, and surface care products under the Ariel, Downy, Gain, Tide, Cascade, Dawn, Febreze, Mr. Clean, and Swiffer brands. Its Baby, Feminine & Family Care segment offers baby wipes, diapers, and pants; adult incontinence and feminine care products; and paper towels, tissues, and toilet paper under the Luvs, Pampers, Always, Tampax, Bounty, and Charmin brands. The company sells its products through mass merchandisers, grocery stores, membership club stores, drug stores, department stores, distributors, baby stores, specialty beauty stores, e-commerce, high-frequency stores, and pharmacies. The Procter & Gamble Company was founded in 1837 and is based in Cincinnati, Ohio.
Purchased: 32 shares x $80.60 = $2,579.20 (+$4.95 commission)
Dividend Income: $88.32 ($2.76/sh annually; paid quarterly in Feb, May, Aug, and Nov)
P/E ratio: 21.6 (vs. S&P @ 25.49)
Debt to capital < 50%: Yes, 38.5%
Interest coverage ratio of at least 3:1: Yes, 32.3x
S&P and/or Moody's credit rating of BBB+/Baa1 or better: Yes, AA-
Current dividend yield > 1.5x S&P yield: Yes, 3.4% vs. S&P @ 1.89%
Payout ratio < 60% (or <85% for utilities): No, 72.8%
Dividend King or CCC classification: King (61+ years of dividend increases)
Comments: So it is not often that you can find a stalwart franchise selling at a fantastic valuation so if you are going to own and grow your ownership in such a franchise you'll need to be willing to accept a fair price for such a company and today I believe I did just that. And when those infrequent opportunities come where you buy a great company at a franchise for a great price, you have to be willing and able to do just that even when others may be running in the opposite direction so to speak. Those who follow P&G will know that the company has been shedding many of it lesser known brands and focusing a core portfolio of products within 10 different categories with about 65 brands. During this reorganization, for a lack of a better term, the company's dividend growth has been lackluster in recent years and yet the payout ratio is a bit higher than I would typically like to see.
Company Profile
The Procter & Gamble Company provides branded consumer packaged goods to consumers in the United States, Canada, Puerto Rico, Europe, the Asia Pacific, Greater China, Latin America, India, the Middle East, and Africa. The company's Beauty segment offers hair care products, including conditioners, shampoos, styling aids, and treatments; and skin and personal care products, such as antiperspirant and deodorant, personal cleansing, and skin care products. It markets its products under Head & Shoulders, Pantene, Rejoice, Olay, Old Spice, Safeguard, and SK-II brands. The company's Grooming segment provides shave care products comprising female and male blades and razors, pre- and post-shave products, and other shave care products; and appliances that include electric razors and epilators under the Braun, Fusion, Gillette, Mach3, Prestobarba, and Venus brands. Its Health Care segment offers toothbrushes, toothpastes, and other oral care products; and gastrointestinal, rapid diagnostics, respiratory, vitamin/mineral/supplement, and other personal health care products under the Crest, Oral-B, Prilosec, and Vicks brands. The company's Fabric & Home Care segment provides fabric enhancers, laundry additives, and laundry detergents; and air care, dish care, P&G professional, and surface care products under the Ariel, Downy, Gain, Tide, Cascade, Dawn, Febreze, Mr. Clean, and Swiffer brands. Its Baby, Feminine & Family Care segment offers baby wipes, diapers, and pants; adult incontinence and feminine care products; and paper towels, tissues, and toilet paper under the Luvs, Pampers, Always, Tampax, Bounty, and Charmin brands. The company sells its products through mass merchandisers, grocery stores, membership club stores, drug stores, department stores, distributors, baby stores, specialty beauty stores, e-commerce, high-frequency stores, and pharmacies. The Procter & Gamble Company was founded in 1837 and is based in Cincinnati, Ohio.
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