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Scoop Up Blue-Chip P&G on Sale

I am lowering my buy under price for Procter & Gamble to $80


Procter & Gamble (PG) — This blue-chip institutional favorite makes some of the most trusted household brands and markets products in more than 180 countries. It was included on my list of Top Stocks to Buy for December

At a recent Morgan Stanley (MS) conference, a PG executive reaffirmed the outlook for fiscal 2014 and said to expect stock buybacks of $5 billion to $7 billion.

PG has a dividend yield of 2.9%. Earlier this year, it increased its dividend by 7%, the 57th consecutive year it has done so.

A six-month consolidation ended early in November with a quadruple-top breakout. Accumulation was high. Initial support was at the breakout point at about $82.50, but on Thursday, PG closed under that line.

I am lowering my buy under price to $80, which represents a 50% retracement from the October low to the December high and is between the 50-day and 200-day moving averages where it has traded many times this year. The target for PG remains $94.

PG Chart
Click to Enlarge
Chart Key

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