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Procter & Gamble Stock Is a Great Long-Term Bet
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Loading...Procter & Gamble Co. (PG) has had a tough run over the last year.
However, the firm’s most recent earnings report suggests that Procter & Gamble has made large strides and that business is picking up speed.
One of the reasons Procter & Gamble is a good buy is that the company’s most recent earnings report paints an encouraging picture of the firm’s forward progress.
Not only that, but the firm beat analysts’ earnings-per-share expectations for the fourth consecutive quarter.
Management said it sees its core earnings improving by about 5% each year, and so far PG stock looks on track to meet or even exceed that goal. This is great news for shareholders because it means the firm is likely to keep its promise to reward shareholders in a big way over the next few years.
In 2017, shareholders are due to receive some $22 billion from Procter & Gamble.
At the moment, PG stock offers a 3% dividend yield, which is much higher than the average S&P 500 company pays out.
While the consumer discretionary sector has taken a bit of a hit in recent months as economic uncertainty caused a pullback in spending, Procter & Gamble’s core business is very secure should a recession hit.
Under the PG umbrella are brands like Tide and Pampers, which are necessities that will still be in demand even if consumers continue to tighten their spending.
PG stock has been undergoing a bit of a transformation over the last two years as the company sold off some of its brands and implemented cost-cutting measures. P&G is vulnerable to foreign currency swings as the firm operates in 180 different countries.
These factors have weighed on PG stock’s share price and kept it from rising alongside the broader market over the past year. However, long-term investors can buy shares of Procter & Gamble now as the firm is poised to make its comeback during 2017.
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