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