The Procter & Gamble Company (PG) continues innovating and building value for its brands of household personal hygiene items, raising the dividend and lifting the stock price up potentially by 50%, says Gary Bradshaw, Senior Vice President and Portfolio Manager at Hodges Capital Management.
“The stock is not necessarily dirt cheap, trading at about 18.5 times this year’s earnings, but it is a fabulous company that I think will trade at a premium to the market multiple. Procter & Gamble over the next three years could earn $6 a share. You put a 20 times multiple on that, and I can see how Procter & Gamble could eventually be a $120 stock,” Bradshaw said.
FOR MORE INFORMATION ABOUT THIS INTERVIEW CLICK HERE.
Bradshaw says PG has brands worth $26 billion and the company has a history of raising the dividend for 52 straight years, most recently by 7%. Some of its brand innovation can be found in the ubiquitous Gillette razors, Head & Shoulders shampoo and Tide detergent.
“Think of Tide detergent. Five or six years ago my wife would send me to the store to get a box of Tide, and I’d bring out this great big orange box. Then three years ago, I’d go get this gallon jug of Tide liquid detergent. Today, I buy Tide PODS, which are little packets that have the detergent, the freshener and the softener all in one,” Bradshaw said. “It’s very innovative, what they’ve done.”
Procter & Gamble (PG), News Corp. (NWS) and Pepsi (PEP) Provide Favorable Return Relative to Treasuries
October 09, 2012
Procter & Gamble (NYSE:PG) Reduces Waste and Increases Profitability Long Term
December 26, 2012
Procter & Gamble Co. (PG) Increases Dividends and Earnings with Ample Free Cash Flow
February 21, 2013
Endocyte, Inc.’s (ECYT) $120 Million Merck (MRK) Deal and Major Cancer Drug Opportunities Point to 2013 Outperformance
April 29, 2013
Apple (AAPL)’s Sustained Cash Flow of $50 Billion Could Raise Dividends, Increase Stock Buybacks
March 14, 2013
