Consumer Sector Ideas

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Procter & Gamble - >>> 3 Top Stocks to Buy During a Sell-Off


Motley Fool

By Reuben Gregg Brewer -

Mar 17, 2022


https://www.fool.com/investing/2022/03/17/3-top-stocks-to-buy-during-a-sell-off/?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article


2. Procter & Gamble: Smaller and better

Procter & Gamble's current elevated share price is directly related to its recent success. In fact, despite inflationary headwinds, it has been able to increase its organic sales while it has been increasing prices.

Don't underestimate how impressive a feat that is, as some of the company's peers have been slammed by rising costs that they couldn't pass on to customers. The real story here dates back a few years, to when Procter & Gamble was supporting a bloated portfolio of smaller brands that just didn't add much to the overall business.

This is why the consumer staples giant decided to slim down, jettisoning all but a core portfolio of large, well-performing names. Since that point, Procter & Gamble has really been on fire, as it has refocused its support on the brands that matter most.

Just how good? Earnings grew 1% in the fiscal second quarter of 2022 -- which sounds terrible until you realize that was lapping 15% growth in the prior year. And it means that Procter & Gamble effectively kept all of the earnings benefit it saw from the elevated consumption during the 2020 pandemic.

This innovation-driven consumer products maker is executing at the top of its game, and a bear market pullback should be welcomed as an opportunity for investors to jump aboard at a more desirable price point. Notably, income growth-oriented investors should consider that the last dividend increase here was a generous 10%.

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