Procter & Gamble
When the market tanks, it’s time to get defensive, and that means hiding out in defensive stocks that tend to hold up regardless of the wider trend in the market, or the economy. One of the biggest and best of the defensives is consumer products giant and Dow component Procter & Gamble (NYSE:PG).
After watching just a small portion of the Olympic Games this year, I was reminded about just how powerful the presence of P&G products have become worldwide. The company was an official sponsor of the Games, so it’s no surprise we were force-fed commercials about Ivory soap, Crest and Head & Shoulders — the latter featuring one of the biggest Olympic stars, swimmer Michael Phelps. The point here is that the incredible ubiquity of P&G’s global brands is hard to duplicate, and that makes it a great safe-haven candidate when market seas get rocky.
Another reason PG shares are a great place to ride out the storm is the company’s annual dividend yield of 3.4%. Collecting a solid dividend yield always is a great way to keep your head about you when everyone else is losing theirs, and considering P&G is one of the Dow’s top dividend stocks, rest assured it’ll keep you level. As for P&G’s share price appreciation, well, that’s certainly been lacking over the past year, as investors have moved toward the risk-on trade in tech, biotech and even homebuilder stocks.
But if a sell-off of real proportions slaps these sectors in the face, you’re going to see money running for cover — and there’s no better cover than a mega-brand consumer products giant like PG.
— Jim Woods, InvestorPlace Contributor