Lanny’s Recent Stock Purchase – Procter & Gamble (PG)

Kicking off the year with a dividend aristocrat stock purchase!  What better name to buy than to have a stock purchase towards the brand that is in your cousins cupboard or bathroom, that is on your neighbor’s shelf or heck, a brand that you just brushed your teeth with using Crest!  I am talking about Procter & Gamble, based in Cincinnati, Ohio!  This isn’t the first time I have purchased them, but I am very excited that I was able to add this bolster-branded company to my dividend producing portfolio!  Check out the details below!

Procter & Gamble (PG) Stock Purchase

Ah!  Here we go, first business day to trade in 2017 and purchase has been made.  Heck, I need to keep up the match with My Dividend Pipeline over there, as he also did the same thing.  On January 3rd, I had a purchase of Procter & Gamble (PG) based on the market price of just under $84 per share using a glorious free trade credit!  Oh how I love free trades : )  I finally had decided that price is very important, but also – the company itself, their core values and hearing about how families love a company, as well as even their employees.  That’s just the vibe I received from hearing more and more about Procter & Gamble.  However, what other reasons alluded me to purchase PG?  Here are a few, very easy reasons:

1.) They were on my 2017 Stocks to Look forward to.  I wanted to build this position up to 50 shares, and this adds 10.1207 to my ~21 shares that I do own.  Their brands by far are a staple amongst many households.  How many do you currently use or have?  I use Crest, Dawn, Charmin, Bounty & Gillette, to name a few.  (Also – Coupons are a must when buying these products!)

2.) They are a dividend aristocrat and made my top 5 foundation stocks for a portfolio, with over 60+ years of consecutive dividend increases, it is hard not to love that history and track record.

3.) Though their earnings have been stagnant and they have higher P/Es currently than in the past, they are still valued below the S&P 500, which has a 26.00 p/e approximately.  Additionally, I am looking forward to their slimmed down version, to get back to revenue and earnings growth, as they have slimmed down their brands quite a bit.

4.) The timing of the trade was very solid.  PG more than likely will go ex-dividend within the next 8-10 days, therefore, with this purchase – I will capture their first dividend of $0.6695 per share.  I am then set up to collect a full year of them from this purchase.  Excited about that and to finally receive more than $20 per quarter from my PG ownership.

5.) This is also part of my upcoming strategy post that I will dissolve to everyone later : ) I know this leaves you hanging, but this post wouldn’t be fun without something to get you going!

See my trade screen shot below: 

I purchased $850 worth at $83.986 per share for a total of 10.1207 shares.  This alone adds $27.10 to my forward dividend income.  In my post on my top 2017 stocks to look forward to, I had discussed that I wanted to reach 50 shares, which I was previously at 21.  Therefore, this has laid a building block on my march towards 50, with only 19 shares left to go.

Stock purchase summary & Conclusion

My position now sits at ~ 31 shares of Procter & Gamble in my portfolio and is now producing me forward income of $83.11 or $20.78 per quarter.  Phew, I really did just cross that $20 per quarter threshold.  If prices remain consistent at ~84 per share, in order to buy 19 more, I will need ~$1,600 more, excluding fees.  Additionally, with their growth rate being fairly low the last 2 years (2016 – 1% and 2015 – 3%), as it relates to their dividend, I do have confidence they will return to their normalized level (hell, can’t get lower than 2016!!).  Their P/E at the time of purchase was around 21 based on current year expected EPS or 19 based on forward earnings.  The yield at time of purchase was 3.19%, so not too high nor not too small.  Overall, very happy with this purchase and continues my path to accomplish my goals set for 2017.

What do you guys think?  Dislike PG at the moment?  Sitting to find the right stock to buy?  Are you active or planning a purchase this week?  Pumped to hear your comments!  What stock are you looking forward to that hasn’t been truthfully discussed yet?  Thanks again everyone for stopping by, hope your 2017 has started off strong!

-Lanny

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28 thoughts on “Lanny’s Recent Stock Purchase – Procter & Gamble (PG)

  1. Hey Lanny,

    I like PG a ton, pretty hard to go wrong with consumer staples, unless you think the world population is going to drop off a cliff. For me, I just believe that UL may offer better value right now with the perceived European headwinds it has been having.

    I want to get PG & KO into my portfolio in a big way at some point, just having a hard time with the entry points. May just have to pull the trigger at some point I guess and just average down if they fall.

    You wasted no time starting off the year!

    • Stacker –

      Nice and yep – UL is a great company. To me, it came down to location & currency; plus – I love crest… haha kidding, kidding – I use Dove in the shower at the household haha.

      Coke has been something I haven’t owned before; I do own a nice chunk of Pepsi, which has been a great company and performer. Buy when you like the price, is what I’ll say! Can’t predict tomorrow, but go off of what you know and can analyze.

      Tried to get out on the right foot, the timing to me made sense!

      -Lanny

    • MDP –

      Thanks for the comment – you made the first stab in the year as well! PG with shedding it’s products that weren’t growing/performing as well, has me excited about them this year, to see what the outcome was from tightening up the brand belt, and reducing costs. Keep it up yourself, I know you’re not slowing down.

      -Lanny

  2. Great buy. We also own PG, but I sometimes ‘forget’ to buy more of what we already have. Seeing all the green numbers in the market lately makes you almost want to wait with making a purchase.

    We still have our eyes on Starbucks, and are considering Allergan as well for a potential buy.

    Oh and it’s working though, can’t wait to read your upcoming strategy post 🙂

    • Divnomics –

      Of course, so much green has you removing your finger from the “buy” button. Luckily, was able to catch it when it was down on Tuesday and now it’s gearing closer to $86 already, talk about how quick things change. I was even considering buying more if they stayed in the low $84’s, but I’ll be holding off again for now.

      And thank you – pumped that you are excited, it’ll be a no-brainer article hopefully!

      -Lanny

  3. Good buy to start the year. I listened to a recent podcast that spoke about how P&G and big brands like it are looking to divest some of their poorer performing brands and concentrating on the big ones. I think focusing on the core brands is a solid strategy and wonder if they’ll do more of that after their recent brand sales to Coty or if they’re done selling.

    • Time –

      Yep, that is one of the reasons why I am big on PG right now. I think it made sense for them + they have quite the cost cutting initiatives going forward. On top of that – they do have great products and brand loyalty that one can’t look past. Excited to collect a bigger dividend come February with this purchase!

      -Lanny

  4. Hi Lanny,
    A nice purchase to start the year with! PG look well priced at the moment with a nice yield too, so congrats! I’m own them too so I’m biased! 🙂
    Best wishes,
    -DL

    • DL –

      Thank you for the comment and coming by. I love the bias, haha, as I like to see that others also have them in their portfolio, given that most of us either do or know others that do use their products! The market has been fun lately, cannot tell where the heck it is going at all. Appreciate the comment and talk soon DL.

      -Lanny

  5. Solid start to the year. What can I say??? I like the buy. It’s one of my January stock considerations among many other consumer staples I like. Getting solid dividend stalwarts in the consumer staples yielding north of 3% is a good long term move in my opinion. Thanks for sharing.

    • Hut –

      Thank YOU for the comment. I thought it was solid timing and having a yield > 3% + ex dividend date coming up; AND it was in my 2017 stock considerations, just had to! Plus – a free trade? Why not. Haha.

      I see you making moves over there, pumped to check it out. Talk soon.

      -Lanny

  6. Seems like everyone is buying P&G at the moment! maybe time for me to jump on the train and yell toot toot? Probably not just yet, but they look like a solid long term hold, which is what I am all about.

    • Buy, Hold –

      Buy, Hold… ahhh sounds like PG! But yes – I do see that people are enjoying them, they did have around a 1.5%-2% mark up since Tuesday, so keep tabs on that. Toot that train all you want BH! Thanks for stopping by.

      -Lanny

  7. Lanny,
    I like PG and I would buy them, but I have my sights elsewhere at the moment and I am hoping to see a little more of a slide from them. There is no doubting their quality though, and it is a position I would like to build into part of my core overtime. Right now we are starting to see some good valuations in the sector from the likes of PG, UL, SJM, and others. Lets hope the foolish swing traders and supercomputers on Wall Street start dragging their feet in our favor.
    Long UL
    – Gremlin

    • Grem –

      Would love seeing some red for a few days! Can an investor get a heck yah?! I’ve been eyeing SJM for years… and never bought, if they take a turn downward more, would love that peanutbutter on my jelly of a portfolio. Thanks for the comment and stay hungry.

      -Lanny

  8. PG is the smallest position in my div portfolio. I am holding off buying more due to their high valuation and measly dividend growth. I also own KMB which I like better than PG.

    • Ian –

      Thanks for the comment. Honestly – had a free trade credit that was set to expire at the end of 2016 – I asked CapitalOne Investing if they could extend it one week – they said “not a problem” and actually extended it a year, used it up within that week though!

      -Lanny

  9. P&G is a great company. I used to do work for them as an agency partner on PUR water filters and all the brand managers were super smart. They’re heavily numbers focused and have great brands, and should continue to do well and continue their 125 years (!) of dividend payments and 60 years of dividend increases. Nice buy!

    • DTen –

      That’s awesome. How many years? Were you able to get discounted stock? haha. Yes, great company and are a forever-type company I feel like, with the brands that they have. Appreciate the comment, talk soon.

      -Lanny

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