Dividend Growth Forum

Under $75 is certainly not a remote possibility, but IMO more of a likely one. That is just my opinion and bet. If it doesn't materialize, then there are lots of more attractive options that would likely meet our needs better than would be done via PG.

(02-06-2015, 07:39 AM)benjamen Wrote: [ -> ]I like and own PG, but I purchased the stock back when it had a much lower P/E and higher dividend yield. At the moment, why not pick up JNJ with it's 18 P/E?

I did.

Now that's what I'm talkin bout! Good sounding alternative that would be worth a look!

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Different business, but in my opinion Emerson Electric represent better current value as compared to many of the DG stocks. Company has low debt, has a ton of cash, modest 56% pay out ratio, and forward p/e of 14. Share price is well off of 12 month highs. Current yield yield of near 3%. I'm considering EMR for a covered call play, as the yield fails to meet my cut off of 4%.

(02-06-2015, 09:10 AM)hendi_alex Wrote: [ -> ]Different business, but in my opinion Emerson Electric represent better current value as compared to many of the DG stocks. Company has low debt, has a ton of cash, modest 56% pay out ratio, and forward p/e of 14. Share price is well off of 12 month highs. Current yield yield of near 3%. I'm considering EMR for a covered call play, as the yield fails to meet my cut off of 4%.

Bought some of that too.

(02-06-2015, 07:57 AM)hendi_alex Wrote: [ -> ]Under $75 is certainly not a remote possibility, but IMO more of a likely one. That is just my opinion and bet.

Options market is pricing PG $75 at ~13% chance by July and ~21% by January

Also this looks like PG has hit severe rock bottom for the time being

(02-06-2015, 07:39 AM)benjamen Wrote: [ -> ]I like and own PG, but I purchased the stock back when it had a much lower P/E and higher dividend yield. At the moment, why not pick up JNJ with it's 18 P/E?

JNJ is obviously also one of the companies that most of us either have or we have at least taken a look at during the years. Personally I thought it was too expensive for quite some time but now it's sliding back into buy range.

However while it does have a lot of similar characteristics to PG, obviously the two work in completely different sectors.

Also something that I noted from the last Q report by PG. The main (only?) reason for worry was the strong dollar. Seeing as I live in Europe the lower than expected earnings are compensated with a stronger than expected dividend due to currency exchange rates.

PG is going down today, current yield just hit 3.00%.

I still don't like PG's high (26.3% right now) P/E ratio . If we want to look a company that is closer to PG is type, why not invest in Unilever? While not cheap, they seem to be fairly priced, P/E of 20, and a dividend yield over 3%.

(02-06-2015, 12:51 PM)benjamen Wrote: [ -> ]I still don't like PG's high (26.3% right now) P/E ratio . If we want to look a company that is closer to PG is type, why not invest in Unilever? While not cheap, they seem to be fairly priced, P/E of 20, and a dividend yield over 3%.

A P/E of 20 == fairly priced argument can not be made for every stock under the sun. Everything is not apples to apples.

The 10 year avg P/E of PG is about 20.5. The forward P/E is about 19.6

The current yield is about 3.1%.

PG will be announcing a dividend bump between now and the end of April. Based off the 5 year dividend growth rate of about 8% I'd say if you bought at today's prices and you're willing to hold onto the stock for about 70 days, to say nothing of a lifetime, your YOC would be about 3.35%

I don't care one way or the other if you buy it, but if you're constantly only looking backwards you're going to miss a lot of whats in front of you.