The Procter and Gamble Company is a company based in the United States. The company designs, manufactures, and sells a wide range of household and personal care goods around the world. The company operates under the popular Crest, Oral B, Tide, Charmin, Dawn brands, among others. The company was founded in 1837.
- The company is a great reopening play in an investor’s portfolio. For example, as consumers went back outside, the demand for personal care and beauty products went up once again. The company reported strong growth and results in this segment of the business. This also benefited investors in the company.
- Procter and Gamble is a safe investment option due to the essential nature of the products that it sells. Despite the economic conditions, people will continue to purchase things like toilet paper and soap in order to maintain a high quality of life. These essential products will bring the company some stability during rough times.
- Procter and Gamble are one of the few extremely strong blue-chip stocks that trade on the market. A blue-chip stock has a strong balance sheet, and high-profit margins, along with a good dividend. This company offers a safe-haven opportunity for investors who are looking for a low-risk starter investment.
- The company continues to offer a strong division every year to its investors. It also continues to increase its dividend every year, further benefiting long-term investors and new people looking to put money into the company’s stock. At the moment, the company offers a payout of $3.48 (2.42% per stock).
- Procter and Gamble have an extremely diverse product line, one of the main reasons why one or more of its products is found in every household around the world. For example, the company sells everything from toilet paper, shaving products, dish soap, and many others. This has benefited the company and its investors in the past and will continue to do so.
- The company faces tough competition in the personal care and household goods industry. Some of these competitors include Kimberly Clark, Clorox, and many others. This competition might hurt the company and its investors in the future.
- Inflation might also hurt the company’s revenues and profits in the short to mid-term. As the price of raw materials (like paper) and shipping rise, the company reported that this might negatively impact profits of 1.9 billion. These possibly lower-than-expected profits in the next couple of quarters might hurt the company and its investors.
I think that Procter and Gamble is a great long-term investment due to its position as a good reopening play, its position as a safe investment option, a diverse product line, a strong blue-chip stock, as well as a good dividend. However, tough competition and negative impacts from inflation might hurt the company and its investors in the future.