Consumer Sector Ideas

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The Procter & Gamble Company (NYSE:PG) - >>> Number of Hedge Fund Holders: 74


https://www.insidermonkey.com/blog/5-best-beauty-stocks-to-buy-now-3-1137038/5/


The Procter & Gamble Company (NYSE:PG) is behind some of the most famous shampoos, waxing creams, hair care products, skincare products, grooming products and cosmetics worldwide.

There could be several reasons to add this top beauty stock to your portfolio in 2023, the chief being The Procter & Gamble Company (NYSE:PG)’s stellar dividend history. The Procter & Gamble Company (NYSE:PG) has upped its dividends for over six decades now.

The Procter & Gamble Company (NYSE:PG) is a highly popular stock among elite hedge funds tracked by Insider Monkey. 74 hedge funds tracked by Insider Monkey had stakes in The Procter & Gamble Company (NYSE:PG) at the end of the fourth quarter of 2022. The biggest stakeholder of The Procter & Gamble Company (NYSE:PG) was Bridgewater Associates of Ray Dalio which had a $757 million stake.

Rowan Street Capital made the following comment about The Procter & Gamble Company (NYSE:PG) in its Q4 2022 investor letter:

“Let’s look at The Procter & Gamble Company (NYSE:PG). Dividend yield is 2.4%. Earnings are forecasted to grow at 5.9%, and its current earnings multiple is at 25x. Now, lets say over the next 3-5 years the market loses interest in the “safe”, mature companies that grow at anemic rates and gets an appetite for growth again. It’s very unlikely that Mr. Market will be paying 25x for 5.9% earnings growth. Lets assume that multiple declines to the market average of 18x — that would be ~6.9% drag per year on the total expected return over next 3-5 years. If we get 2.4% (dividend) + 5.9% (earnings growth) – 6.9% (decrease in earnings multiple) = 1.4% (annual return we can expect on average from this stock).”

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