I have considered PG a few times in the past but it just doesn't have enough growth for me and with a projected growth rate under 5% for the next 5 years I think its too expensive at current prices. The payout ratio has slowly crept up from 43% to 58% over the last decade and the dividend growth rate has slowed to mid single digits. With growth of under 5% going forward, I expect the dividend growth to be about the same.
Fine for a retiree who is happy with a 3% yield, but with another 25 years to retirement I am looking for a bit more growth.
I had Clorox (CLX) in my portfolio previously, but sold it last year for a decent gain when I thought it had become overvalued.
I currently own Church & Dwight (CHD), which is a smaller and faster growing company. Although it yields less than PG, I think in the long run my capital gains will more than make up for it.
Fine for a retiree who is happy with a 3% yield, but with another 25 years to retirement I am looking for a bit more growth.
I had Clorox (CLX) in my portfolio previously, but sold it last year for a decent gain when I thought it had become overvalued.
I currently own Church & Dwight (CHD), which is a smaller and faster growing company. Although it yields less than PG, I think in the long run my capital gains will more than make up for it.