If you’re looking for a stock to add to your portfolio and you want to keep it stable and steady then look no further than Procter & Gamble (PG). This is one of those stocks you can hold till you die and it would be more than ok to do so.
Why I love Procter & Gamble (PG)
If you’re looking for a safe stock that pays out a steady dividend then you’d be hard pressed to find anything “safer” than Procter & Gamble. Don’t be fooled by the name (Gamble, yah – haha) there is no gambling going on here. Putting your money here is sure to pay off over the years.
Procter & Gamble sells very well known products that you use everyday. With brands like Tide, Head & Shoulders, Crest, and Pampers it would be hard to find someone who doesn’t use something that is associated with Procter and Gamble. These are the things that people will need to continue to buy no matter how the economy is doing. You can’t stop cleaning yourself. You can’t stop cleaning your teeth. And you have to keep changing those diapers. Yes, there are competitors, but try and name one that has such strong brands that are so well known.
Plus, they sell these things worldwide, not just in the United States. And with that it has the luxury of clearing more than $1 billion dollars in net sales annually from more than 20 of its different brands. That’s huge money. How huge? How about just under a $250 Billion market cap huge. If you’re keeping count that’s the largest market cap company in the “personal & household products & services” sector. The next closest one for average market cap in this sector is L’Oreal with just over $100 billion.
Dividends, dividends, and more dividends
Let’s not forget about the dividends. Although you can’t really name Procter & Gamble as a growth stock you can most definitely see the value in its dividend. Right now it’s yielding right around 3% and this is a dividend you can count on. Why? Because you can look at its long track record and see that they have been paying out and increasing dividends for more than half a century. That type of dedication to shareholders is only found in a small elite group of stocks.
Speaking of elite groups, how about that one of their largest shareholders is Warren Buffett’s group Berkshire Hathaway. No surprise there as Buffett loves to invest into stable long term play stocks. Undoubtedly, Procter & Gamble has Warren Buffett’s blessing. You and I should probably invest some money with P&G too.