02-06-2015, 03:34 PM
(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.