Dividend Stocks to Sell: PG Stock
Procter & Gamble (PG) is perhaps the king of defensive stocks. But if that’s what you consider “defensive,” I’d like to gift you this hand-grenade with its missing pin. P&G stock is old news. It is as stagnant a company as you are likely to find in the large-cap arena.
Things are so bad that P&G stock has introduced a lower-end version of Tide detergent. How can you provide a lower end version of laundry detergent? Tide sales fell 9% last year, and yet how can P&G expect that customers won’t trade down to whatever this low-rent version is, and cut revenue even more?
Moreover, the company is exposed to currency problems beyond its stagnating core business, and it just cut earnings guidance from a 5-7% EPS gain to 3-5%. P&G is a company in paralysis. Once again, we have P&G stock selling for 18.5 times estimates, but this is on only 5% growth. You can find better dividend stocks with that 3.1% yield.