Procter & Gamble is trading at a forward PE ratio of 22.6x. Colgate-Palmolive, Kimberly Clark, and Clorox were trading at forward PE ratios of 22.5x, 18.2x, and 29.5x, respectively, as of March 18.
Procter & Gamble, which owns popular brands like Tide, Ariel, Vicks, Pampers, Charmin, Bounty, and Gillette, will likely perform well amid challenging market conditions. The company’s focus on innovation, marketing, and productivity will likely boost its performance.
Procter & Gamble is a “dividend aristocrat.” The term is used for companies that have hiked its dividend for at least 25 years. Last year, the company raised its dividend by 4%, which marked the 63rd consecutive year with a higher dividend. Next month, the company will announce its third-quarter results. Investors expect the company to increase its dividend for the 64th straight year.
As of today, Procter & Gamble’s dividend yield is 2.5% compared to 2.6%, 3.2%, and 2.2% for Colgate Palmolive, Kimberly Clark, and Clorox, respectively.
I think that the defensive nature of Procter & Gamble stock and its strong dividends make it a good buy in a challenging market environment.
View more information: https://marketrealist.com/2020/03/is-procter-gamble-good-bet-investors/