No, no it wasn’t a stock on my beloved June dividend stock watch list. It wasn’t a stock that should be unfamiliar, however. In fact, my recent purchase is a second purchase I’ve made in this iconic, legacy-brand fulfilled company this year! I couldn’t be happier to have made an additional purchase, at an even lower price that an earlier purchase of this dividend stock. On June 1, 2018, I purchased 20 more shares of Procter Gamble (PG)!
The Stock Purchase – Procter Gamble (PG)
What had happened? Well, by the time my June Dividend Stock watch list was written and then subsequently released, those stock prices all increased steadily, each and every day. Talk about frustrating, as a dividend investor. After you do all of the dividend stock screening, find the stocks you would love to add, it feels like the rug almost gets pulled from under you. However, when one rug gets pulled, another rug slides in, as a way to replace the previous one. At least, that just so happened to be the case here, with PG. You see, I was really pushing for a Johnson & Johnson (JNJ) stock decline, to stay/see them over the 3% dividend yield threshold. However, it just never got there. What did happen, though, was another Top 5 Foundation Dividend Stock starting showing more value and PG just came quick onto the screen. In fact, the stock dropped $1.30 per share since my earlier purchase this year, to the time I purchased them on the 1st, at $72.95.
Dividend Diplomat Stock Metrics
Here are the quick dividend stock screener metrics:
- Price to Earnings: At $72.95 with a forward earning project of $4.19, this equated out to a p/e ratio of 17.41, within a range that I don’t mind seeing.
- Dividend Growth: They recently announced this year a dividend increase of 4%, which is moving in the right direction, and has gotten better every year. Further, they have increased their dividend for over 64 years.
- Dividend Yield: With the $72.95 price point, at a dividend of $2.8688, their yield was at 3.93%, well above the S&P 500 (on average) and this yield was greater than my portfolio yield, as well.
- Payout Ratio: Analysts project an earnings per share of $4.19. Therefore, with their dividend of $2.8688 per year, this equates to a payout ratio of 68%. Slightly higher than where I like it, but is coming down steadily over the last few years.
Here is proof of my purchase
In summary, I purchased 20 shares of Procter Gamble (PG) at $72.95 with a $6.95 trading fee for a total cost of $1,465.95. The 20 shares adds $57.37 to my forward dividend income project. In addition, this put my position in Procter Gamble (PG) at over 65 shares within my portfolio. The 65 shares now produce over $186.47 per year, on a go-forward basis or $46.62 per quarter, causing at least a reinvestment of well over half of a share per quarter.
Procter Gamble (PG) Stock Purchase Summary & Conclusion
Why else did I buy PG? It was funny, as it was hard NOT to see their products over the last week! I used Tide when washing laundry. I used Crest when brushing my teeth. I ordered, with a nice coupon and waiting for a sale price, the power-glide Gillette 5 razor, another PG product. For a brand to have that much staying power is hard to do, considering I am as frugal and look for lower prices, as much as I can. I continually find ways to use these products at relatively nice price points and I truly do benefit more from theirs than any other brands. Lastly, my younger brother had his second child and I went to Target (TGT) to look for a small gift for him & diapers came to mind. When asking him, “what is your go-to diaper brand?” He said, “I prefer Luvs”, which is, again, ANOTHER PG product. I was sold.
Therefore, I am very anxious to receive my upcoming quarterly dividend from PG, come August. I know there were other investments on my watch list & other investments being purchased out there, but I couldn’t help the fact that I could add to my PG position at a lower price! Overall, what do YOU think of this purchase? Think PG is dead and is just an old company that will fade out? Think they still have that brand power to last another lifetime? Curious on what you think! As always, appreciate the comments, thank you again for stopping by. Most importantly – good luck and happy investing!
-Lanny