Money and Finance
It's time to update my valuations on some of the dividend growth favorite consumer staples companies. Consumer staples companies are great for dividend growth investors because people need to wash their clothes and clean their house whether the economy is booming or busting, which provides for more stable operations. Today I'm going to look at the consumer staple giant Procter & Gamble (PG). Shares of Procter & Gamble closed trading on Friday, April 25th at $81.41, giving a current yield of 3.16%.
Discounted Earnings:
Analysts followed by Yahoo!Finance expect Procter & Gamble to grow earnings 8.38% per year over the next five years, and I've assumed they can grow at 5.59% (2/3 of 8.38%) for the next three years and 3.50% in perpetuity. Running these numbers through a discounted earnings analysis with a 9% discount rate and summing over 30 years yields a fair value price of $82.80. This means the shares are trading at a 1.68% discount to the discounted earnings analysis.
Click here to read the rest of the analysis on Seeking Alpha.
I've updated my Stock Analysis page to include this update.
If you'd like to receive posts via email you can do so here or on the Subscribe page at the top of this blog. As a post subscriber you'll be the first to know about ideas that are running around in my head for the blog. Also make sure to follow me on Twitter to get real time updates of purchases that I make.
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Money and Finance
Does The Procter & Gamble Company Belong In Your Portfolio?
It's time to update my valuations on some of the dividend growth favorite consumer staples companies. Consumer staples companies are great for dividend growth investors because people need to wash their clothes and clean their house whether the economy is booming or busting, which provides for more stable operations. Today I'm going to look at the consumer staple giant Procter & Gamble (PG). Shares of Procter & Gamble closed trading on Friday, April 25th at $81.41, giving a current yield of 3.16%.
Discounted Earnings:
Analysts followed by Yahoo!Finance expect Procter & Gamble to grow earnings 8.38% per year over the next five years, and I've assumed they can grow at 5.59% (2/3 of 8.38%) for the next three years and 3.50% in perpetuity. Running these numbers through a discounted earnings analysis with a 9% discount rate and summing over 30 years yields a fair value price of $82.80. This means the shares are trading at a 1.68% discount to the discounted earnings analysis.
Click here to read the rest of the analysis on Seeking Alpha.
I've updated my Stock Analysis page to include this update.
If you'd like to receive posts via email you can do so here or on the Subscribe page at the top of this blog. As a post subscriber you'll be the first to know about ideas that are running around in my head for the blog. Also make sure to follow me on Twitter to get real time updates of purchases that I make.
- Bemis Company, Inc. Dividend Stock Analysis
As part of building a diversified dividend growth portfolio it's important to own not only a number of companies but also companies that operate in a variety of industries. Previously I've looked at some restaurants, beverages, and consumer staples...
- Can United Technologies Corporation Move Your Portfolio?
As part of building a diversified dividend growth portfolio, it's important to own not only a number of companies but also companies that operate in a variety of industries. Previously I've looked at some restaurants, beverages, and consumer staples...
- Can Johnson & Johnson Cure What Ails Your Portfolio?
Johnson & Johnson (JNJ) is well known around the dividend growth investing community with over 50 consecutive years of dividend increases. Chances are there's Johnson & Johnson products in your medicine cabinet right now and if you've...
- Is Cracker Barrel Old Country Store, Inc. Cooking Up Rewards For Investors?
Cracker Barrel Old Country Store Inc. (CBRL) has been a dividend darling the past few years with huge dividend increases and massive share buybacks while the share price was depressed. If you do a lot of travel by car you're most likely familiar with...
- Is Family Dollar Stores, Inc. A Bargain?
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