Proctor & Gamble (PG)
Proctor & Gamble (PG) may be the mother of all defensive stocks.
The company sells just about everything we buy on a regular basis: razor blades, oral care products, laundry detergents, dish soap, diapers, toilet paper and everything in between. You can find P&G products in 180 countries, and the company has been around since 1837. In fact, I just visited the Gamble house out here in Pasadena, and they had soap bars that were about that old on display.
However, that does not mean you should hold a stock trading at 18x next year’s earnings on 6% EPS growth. You want to chase that 2.8% yield? Be my guest. But if the stock falls more than 2.8%, that dividend won’t mean a darn thing. Then we have the fact that activist fund manager Bill Ackman took a stake in P&G. Considering the drama surrounding the failure of J.C. Penney (JCP), that’s a distraction I want to avoid.