08-28-2014, 10:09 AM
Can anyone explain to me why CL trades at such a high multiple? I'm just not understanding it. I know it has a huge streak of dividend increases and that it is a reliable dividend paying consumer staple. But other than that, the yield is not that exciting, the earnings have completely stalled, making little progress since about 2009, and the payout ratio has been climbing steadily to support the dividend increases.
So why is it trading at a p/e of 27, when so many other consumer staple dividend growth champs are trading in the 19-22 p/e range? Have I missed some news or some other differentiating factor? What gives?
Thanks.
So why is it trading at a p/e of 27, when so many other consumer staple dividend growth champs are trading in the 19-22 p/e range? Have I missed some news or some other differentiating factor? What gives?
Thanks.