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How‌ ‌to‌ ‌Buy‌ ‌P&G‌ ‌Stock Now, Forecast and Dividend Guide

November 22, 2021 16:28

In this article, we will study the stock of P&G, also known as Procter and Gamble, a company that specializes in a wide range of personal/consumer products and is routinely listed as among the largest corporations in the world. We will study the current price, dividend information, stock split, and the future business prospects of P&G and tell you if buying P&G stock today is the right choice or not.

P&G stock has not risen as much as other stocks such as tech companies, and this may mean that the stock can rise significantly further in the months and years ahead – especially due to the fact that the company’s business is largely immune to the disruptions caused by the pandemic.

P&G‌ Overview

Procter and Gamble is a diversified, multinational company, with a presence in most countries of the world. The company has been in existence since 1837. Its P&G Stock is a component of Dow Jones Industrial Average, S&P 100, and S&P 500 indices.

The company started as a soap and candle manufacturer in mid-19th century in Cincinnati, Ohio. P&G was founded by William Procter, and James Gamble, who were English and Irish immigrants respectively. Procter and Gamble started when they became business partners and the foundation of the business appeared in 1837.

The revenue of the company hit $1million by 1859, when almost 80 people worked for the company. American Civil War signaled a boom for the company as P&G started making soaps and candles for the Union Army during the civil war years.  Then, the company expanded in international markets with the onset of 20th century and acquired several similar businesses in Europe, Asia, and other continents. Today Procter and Gamble has operations in more than 80 countries. It sells more 300 brands in more than 160 countries.

P&G’s activities and business

One of the most overlooked aspect about P&G is the role its advertising played in shaping modern business and entertainment arenas. Procter and Gamble was among the first companies to use advertising to sell its products. The company’s advertising saga started in 1880s when P&G started publishing full-page advertisements about its products in many general interest magazines. This continued with the advent of radio and television when P&G developed some of the first commercial radio and television ads for its wares.

Procter and Gamble owns a variety of household brands. Ariel, Fairy, Gillette, Head & Shoulders, Pantene, Oral-B and Vicks are some of the popular brands owned by P&G. Each of these brands has more than $1billion revenue globally. The company also owns several smaller brands that also contribute significantly to its bottom-line.

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P&G‌ Stock Historical Price

P&G stock history stretches back to decades as the company has been listed on NYSE for more than a century and has been a component of Dow Jones Industrial Average since 1932.

As a matter of fact, P&G stock historical price has ranged from $3.52 to $146.92 between 1985 and 2021. The present stock price of $143.78 is quite close to the highest ever price of $146.92. Earnings per share is around $5.50 which gives us a TTM P/E ratio of 26.09.

Why Invest in ‌P&G‌ Stock? Points to Consider

One should consider the fundamentals of P&G before deciding whether the P&G stock is a buy or sell. Historical price movements and analyst forecasts can also help you guide in making a choice about buying P&G stock.

P&G‌ business model and share price

P&G has a robust business model with more than 300 brands that are sold in around 160+ countries. Each brand of the company  holds a strong position within its category. Moreover, several brands have revenues in the range of billions of dollars. It’s also important to analyze the financials of the company before buying P&G Stock.

Total revenue of the company for the financial year ending 6/29/2021 was around $76 billion and 118 million. Procter and Gambles net earnings or net profit was around $14 billion and 35 million that translated into an EPS of $5.50. The company’s balance sheet counts assets worth $119 billion along with net debt of $21 billion and 700 million. While the business generated a positive cash flow of $18.371 billion in the financial year ending on 6/29/2021.

Share price of the company has traded in the range of $121.54 – $146.92 over the past year and the price continues to be rangebound. It’s quite remarkable how the stock of Procter and Gamble has largely missed on the massive rally in stock prices as the price seem to be quite static especially after one considers the price movement in other stocks. Due to the past price trends in the stock price of P&G, it’s safe to assume that the stock will shoot up in the near future and those buying at today’s prices can make a handsome profit when the upward price trend starts.

P&G‌ stock dividend information 

P&G stock is also well known for paying consistent dividends. It’s among the few stocks that get the title of dividend aristocrats. A dividend aristocrat is a stock that has consecutively increased its dividend for over 25 years.

Procter and Gamble has consistently increased its dividend for over 64 years and the P&G Stock dividend is currently $3.48 per share. This results in a dividend yield of 2.42% that is more than what treasury bills and US government bonds pay at present.

P&G stock split information

P&G stock split refers to instances when the company’s stock underwent stock split and investors were offered multiple shares in place of a single share held by them. In fact, P&G stock has been split 6 times in the past, in 1970, 1983, 1989, 1992, 1997, and 2004. P&G stock split ratio was 2:1 each time or an investor got 2 shares for every 1 share held by them on the stock split date. So, if an investor had 1000 shares of P&G at the starting of 1970, then after these 6 stock splits, he or she would own 64,000 shares by the end of last stock split in 2004.

‌P&G‌ stock forecast and prediction

At present around 22 analysts from some leading Wall Street brokerages and investment banks such as Credit Suisse, UBS, Morgan Stanley, RBC Capital, Deutsche Bank, Citigroup, and JP Morgan have outstanding ratings for P&G Stock forecast.

Of these 22, 6 analysts have a strong buy rating, while 4 have a buy rating, 10 have a hold rating, and only 2 analysts believe that the stock will underperform in the upcoming days. All the analysts have an average 1-year price target of $153 for the P&G stock.

On the technical front, the price has been on an uptrend with two support levels at $138, and $131. If these levels occur, then selling pressure may force the stock to move towards its long-term support level of $127.

Where to Buy ‌P&G‌ Stock

The easiest way to buy P&G Stock is by creating an account with ZFX. A stock account with ZFX will allow you to buy any share of your choice across several stock exchanges in the world.

ZFX, an affordable broker for buying P&G stock and more

ZFX is a regulated financial institution, regulated in the UK, and the Seychelles and offers a wide variety of capital market services. The broker ZFX offers trading solutions for stocks, forex, CFDs, and commodity markets to investors globally.

ZFX offers a wide variety of accounts such as the Mini Trading Account, STP Trading Account, and ECN Trading Account. Each type of account has its own unique features, and the minimum deposit threshold also depends upon the type of account. Minimum deposit is $50, $200, and $1,000 for Mini, STP, and ECN accounts respectively. The FX spread at 1.5 is the highest for the mini account and at 0.2 is the lowest for the ECN account. The mini account offers 1:2000 maximum leverage, while the ECN account offers 1:500 leverage. Each account allows you to trade in shares, CFDS, indices CFDs, forex currency pairs, and commodities such as precious metals and crude oil. There are no charges or fees for buying P&G Stock through a ZFX account.

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How to Buy ‌P&G‌ Stock Now

Buying P&G Stock is quite easy with ZFX as you just need to follow the following steps to buy P&G Stock. We will be using the MT4 platform for buying P and G stock as ZFX uses MetaTrader 4 (MT4).

ll you need to do is follow the steps below.

  1. Register with ZFX: Register for a trading account with ZFX. You can choose the type of trading account that you want after comparing the features of each type of account. These include Mini Trading, STP or ECN. These features are on the Accounts page on ZFX website.
  2. Verify your ZF‌X account: Once you have signed up for an account. You will need to verify the account by clicking on the link that you received from ZFX in your inbox.
  3. Make your first deposit: Now the account is ready to trade after verification, and all you need to do is the add funds to it. The amount of first deposit will depend upon the type of account that you’ve opened.
  4. Buy ‌P&G‌ stock: Once the account has been funded, you are ready to buy P&G Stock by logging into the trading interface.

Here is a detailed step by step overview of the above mentioned steps.

1 – Register with ZF‌X

You need to click on the Blue button at the top right corner of the window that says Open an account to start the account opening process as shown in the image below:

EN homepage start trading

By clicking on the blue button, you will arrive at the following registration page:

Trade Starbucks stock- Step 1

Once filing the information on this form, you will receive a verification email. Enter the verification code to verify your account. Now you will arrive at another page where you will have to choose the account type as shown below:

Trade with ZFX - basic info to buy p&g stock

Now you need to select the account type. Then, click on the Sign Up Now button at the bottom of the page. Note that you can also register to open a free demo account, which will allow to practice trading, risk free. Make use of this valuable tool to get familiar with the platform. Indeed, it’ll help you get a good understanding of how to trade stocks.

2 – Make a first deposit

Now, you will be able to deposit funds in your account. To do so, click on the deposit button displayed on the webpage. This will bring you to the deposit section of your account interface as shown in the image below:

Make Deposit - P&G stock investment

The deposit page will show you a wide variety of payment methods to choose from. This includes VISA/Master cards to E-Wallets, and bank transfers.

3 – Buy P&G stock

All you need to do is add funds to your account now using a payment method of your choice and you will be ready to trade P&G Stock.

Bottom Line : Should You Buy ‌P&G‌ Stock?

P&G Stock is among the most highly rated stock and has a long track record of delivering exceptional returns. The company is ideal for those who seek preservation of capital along with steady dividend income. P&G Stock is also among the few stocks categorized as dividend aristocrats or companies that have consistently raised there annual dividends for more than 25 years.

Indeed, P&G has raised its dividend for 64 consecutive years and the stock has a dividend yield of 2.42% at the current P&G Stock price of $144.60. The stock is a good buy now as it has not moved up significantly and this essentially means that there may be a significant upward trend in P&G stock price in the future.

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