Hillard Lyons suspended its $77 price on Proctor & Gamble target today and cuts its rating from long-term buy to neutral. The firm said the downgrade was based on the company’s warning on its fourth quarter earnings results. PG said that the 4th quarter would be impacted by slowing growth based on negative impacts from foreign exchange rate changes.
PG has a solid dividend history and is considered one of the more dependable long term dividend-paying stocks. Today’s downgrade will come as a disappointment to many investors. The company started paying dividends in 1891 and has increased its dividend for 58 consecutive years. It currently pays an annual dividend of $2.25 which gives it a yield of 3.4%, slightly higher than its 5 year yield average of 3%. PG has a payout ratio of 66% and a 5 year dividend growth rate of 10%.
Procter & Gamble has had flat income growth over the last 5 years which is what keeps it ranked #99 on our best 100 list. In fact it only makes the list because of the other solid dividend fundamentals and is one of few stocks on the list with flat income growth rate.
About Procter & Gamble
PG has a P/E ratio of 18.51 and a market cap of $165B. The stock is down over 7% in the last 12 months and more than 9% so far in 2012. Procter & Gamble makes packaged consumer goods products that are sold in 180 different countries. To find other consumer goods dividend stocks go here.