Background: Procter & Gamble manufactures and markets a broad range of consumer products in many countries throughout the world. Products fall into five business segments: fabric and home care, paper, beauty care, health care, and food and beverage. Today, P&G markets more than 250 products to more than 5 billion consumers in 130 countries. P&G trades an average of 9.8 million shares per day with a market cap of $183.6 billion.
52-Week Range: $59.07 to $67.95
Yield: 3.36%After a significant dip in price, which brought its moving averages lower, PG has shown resiliency as it bounces back. The low price on the chart during June coincided with a Tom DeMark TDCombo 13 market timing indication of a bottom. Even after accounting for the early summer drop in price, P&G has appreciated more than 10% in the last year, and the average analyst target price for PG is $68.85. The market is pricing in a higher-than-average growth premium for P&G but still well within reasonable levels. I generally start to shy away from earnings multiples above 20. However, at 17.2, potential investors don't have to feel they are about to become bagholders. Shareholders receive $2.25 annually in dividend payments, making the yield very attractive at 3.36%. Over the last five years, the dividend has grown by an average of 10.8% per year. The dividend growth rate surely makes P&G attractive as a long-term core holding. How about the short interest? Short-sellers are not interested in betting against this one. Short interest is a nonfactor at a rate of 0.7% of the float. PG Dividend Yield data by YCharts