There are certain stocks that just deserve to be in all long term, conservative portfolio and one of those should be Proctor and Gamble (PG). If you need a stock with A ++ financial strength. earnings that are almost 100% predictable and has one of the most stable prices of any stock this is it. Oh, did I mention a 3.44% dividend that is only 50% of earnings?
The chart for Barchart showing the price for the last 6 months against its 20, 50 and 100 day moving averages plus the Trend Spotter says buy before its too late:
Barchart technical indicators:
- 60% Barchart short term technical buy signal
- Trend Spotter hold signal about to cross over to buy
- Trading above its 20 and 50 day moving averages
- The Relative Strength Index is 57.98% and rising
- Barchart computes a technical support level at 61.26
- The stock recently traded at 63.19 which is above its 50 day moving average of 62.62
Summary: Proctor and Gamble (PG) should be a core holding in most long term conservative portfolios. The sales and earning growth isn't spectacular but it is sure and steady and the 3.44% dividend is better than the 2.11% you can expect from a 10 year US Government bond. especially given the fact that PG keeps increasing the dividend.
Jim Van Meerten is a Marketocracy Master
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