# Procter & Gamble



## rgp (Sep 1, 2022)

Anyone else holding their stock ? What in the world is going on with them ?

The stock has dropped about $20.00 p/share since the first of the year. 

I'm going to look into it starting today....just wonder if othere have already.

I have held them for decades .... but am seriously thinking of bailing ...... Not sure what to do ?


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## mathjak107 (Sep 2, 2022)

Why should it be different than any other stock in a down market ?

is there something magical about it that it defies the tide ?


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## Aunt Bea (Sep 2, 2022)

The S&P500 index is down approx. 16.77% since the first of the year.

P&G appears to be down about 13.13% YTD.

I would hang on and reinvest the dividends.


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## mathjak107 (Sep 2, 2022)

Aunt Bea said:


> The S&P500 index is down approx. 16.77% since the first of the year.
> 
> P&G appears to be down about 13.13% YTD.
> 
> I would hang on and reinvest the dividends.


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## mathjak107 (Sep 2, 2022)

Keep in mind reinvesting the dividends adds no more dollars working for you than you had
It is no different then a portfolio withdrawal and going on second thought I don’t need it and you put it back

if you don’t reinvest you will have less then before the dividend compounding by the markets  for you

this is important for all to understand.  Dividends are not like interest

dividends are a forced withdrawal from your account value

you just have the option of putting it back as a reinvestment.

only new additional money added can increase the dollars compounding  for you , not the reinvestment of what you already had existing .

there is no such thing as getting paid to wait with dividends , as they come at a cost unlike interest which does not get subtracted off your existing invested dollars...

they are simply a forced liquidation of your share value and you get to decide whether to keep the withdrawal or put it back no different then a portfolio draw


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## rgp (Sep 2, 2022)

Aunt Bea said:


> The S&P500 index is down approx. 16.77% since the first of the year.
> 
> P&G appears to be down about 13.13% YTD.
> 
> I would hang on and reinvest the dividends.



 yes, I have been reinvesting it for years . I sold some when I got divorced , but bought it back ASAP .


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## Aunt Bea (Sep 2, 2022)

rgp said:


> yes, I have been reinvesting it for years . I sold some when I got divorced , but bought it back ASAP .


IMO it will come back with the rest of the market, but if this is a core investment or major portion of your investments you might want to consider some diversification to help smooth out the bumps.


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## rgp (Sep 2, 2022)

mathjak107 said:


> Why should it be different than any other stock in a down market ?
> 
> is there something magical about it that it defies the tide ?



 P&G has actually been a tad stronger than many in down markets of the past. The six month projection is in the [low] $150.00 per range and [high] $180.00 .... But I'm greedy LOL @ 73 I like to see it @ it's best daily.


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## rgp (Sep 2, 2022)

Aunt Bea said:


> IMO it will come back with the rest of the market, but if this is a core investment or major portion of your investments you might want to consider some diversification to help smooth out the bumps.



 Well .. @ this time I do not have it ear-marked for anything, and putting it in the bank is useless, so I suppose I'll let it ride & watch it. 

Visions of 1929 are scary <grin>


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## oldmontana (Sep 2, 2022)

mathjak107 said:


> Keep in mind reinvesting the dividends adds no more dollars working for you than you had
> It is no different then a portfolio withdrawal and going on second thought I don’t need it and you put it back
> 
> if you don’t reinvest you will have less then before the dividend compounding by the markets  for you
> ...


There you go again bashing dividends again.  You were wrong a year ago.

Stocks that pay dividends are a great way to add income as the stock price increases...in most cases.


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## Right Now (Sep 2, 2022)

I own P&G stock, have held it for several years, and it doesn't disappoint me.  The dividends are adding up as I reinvest them, and overall the stock is solid.
Almost everyone buys a P&G product regularly.....I only wish I had purchased more when I first bought shares.


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## mathjak107 (Sep 3, 2022)

Right Now said:


> I own P&G stock, have held it for several years, and it doesn't disappoint me.  The dividends are adding up as I reinvest them, and overall the stock is solid.
> Almost everyone buys a P&G product regularly.....I only wish I had purchased more when I first bought shares.


Once again for those who don’t get it .

if you pulled money out of your bank account every quarter , didn’t use it and put it back in , would you say those deposits are adding up?

i guess you could if you didn’t understand it was your own money going back in that you had before .

that dividend is a draw off your own account ..it just gives you the choice of spending the withdrawal , reinvesting it in the same company or putting it in another investment .

but it certainly is not ADDING UP to anything more than you had pre the div .

switching pockets like a stock split and having more shares at a lower price is not a gain..it is the same dollars you had being compounded on prior .

so few seem to understand just what goes on here when it comes to dividends.

we should just make a stick already…

companies have paid dividends right in to their grave , losing money year after year so they are not just from profits ..they are simply an amount the board chooses to subtract out of the company cash register and off the companies market value regardless of where it comes from .


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## oldmontana (Sep 3, 2022)

Right Now said:


> I own P&G stock, have held it for several years, and it doesn't disappoint me.  The dividends are adding up as I reinvest them, and overall the stock is solid.
> Almost everyone buys a P&G product regularly.....I only wish I had purchased more when I first bought shares.


Five of the primary reasons why dividends matter for investors include the fact they substantially increase stock investing profits, provide an extra metric for fundamental analysis, reduce overall portfolio risk, offer tax advantages, and help to preserve the purchasing power of capital.


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## mathjak107 (Sep 3, 2022)

oldmontana said:


> Five of the primary reasons why dividends matter for investors include the fact they substantially increase stock investing profits, provide an extra metric for fundamental analysis, reduce overall portfolio risk, offer tax advantages, and help to preserve the purchasing power of capital.


Total return is what is the measurement is for determining performance, not how it is arrived at .
Just look at AT&T for an example of how risky stocks can be dividend or not .

that was once thought to be the stock of choice for widows and orphans .
it not only has had insane volatility but performance has sucked for a long long time.

including reinvesting all dividends it has returned a pathetic 1.40% average the last 15 years ,
1.08% the last 10 , compared to a total market funds 9% the last 15 years , and almost 13% the last 10 .

you took on not only individual company risk plus the normal market risk of a diversified fund and got nothing for that EXTRA risk.



80% of the  S&P pay dividends and 100% of the dow pay dividends and they both are down  as much ….plenty of risk there

Dividends do nothing total return doesn’t do as far as preserving capital .

taking a 4% dividend and spending or reinvesting it will give you the same balance and cash flow as the same dollars  from a portfolio of non div payers with the same total return .

3 mythical  reasons you gave As a general statement 

dividend claim to fame is that a rising dividend , not just paying one , is generally looked at as a sign of health of a company since they are saying look at me , I have money we don’t need .

so historically investors liked that …it hasn’t been true for a while anymore and a stock is a stock today …how it does is up to the specific company.

the ten highest dividend paying stocks in the Dow have  all been dogs performance wise


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## HoneyNut (Sep 3, 2022)

rgp said:


> I have held them for decades .... but am seriously thinking of bailing ...... Not sure what to do ?


Looks like the current recommendation is 'Buy', so apparently you should buy more while the price is so attractive.


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## oldmontana (Sep 4, 2022)

rgp said:


> Anyone else holding their stock ? What in the world is going on with them ?
> 
> The stock has dropped about $20.00 p/share since the first of the year.
> 
> ...


If you do not need money or know of another stock you would rather own I would not sell.  Yes, the stock is down but most are.

P&G is a strong stock and with a good divided.


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## mathjak107 (Sep 4, 2022)

Own a stock because it is good with a good total return and potential for more growth …whether it pays a  dividend or not  is irrelevant


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## oldmontana (Sep 4, 2022)

mathjak107 said:


> Own a stock because it is good with a good total return and potential for more growth …whether it pays a  dividend or not  is irrelevant



whether it pays a  dividend or not  is irrelevant

It is to me. It is to many.  

Its great if you want a steady income.  One does not have to sell a stock for income.  One can ride out a down market like we have and get income.


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## mathjak107 (Sep 4, 2022)

oldmontana said:


> whether it pays a  dividend or not  is irrelevant
> 
> It is to me. It is to many.
> 
> Its great if you want a steady income.  One does not have to sell a stock for income.  One can ride out a down market like we have and get income.


Meh, taking the dividend and spending it is identical  to pulling the same dollars out of a portfolio of non div payers ..

the company is selling off a piece of your investment and dropping the share value by the same amount ..

it is no different then you doing that from a portfolio….the balance will be exactly the same assuming same or greater total returns .

you may not think you are being charged so to speak for that dividend withdrawal but you are and it is immediately subtracted off the dollars left for markets to act on.really

it actually makes a down market worse as each payment lowers the share price by the same amount no different then you pulling the same dollars out of a portfolio and the dollars compounding left is less and less by the draw amount .

there Is no magic money or stock immune to losses while it spins off income for someone.

it is subtracted right off your invested balance.

one can set up monthly or quarterly income streams at most brokerages and you can pick any holdings to choose where the income comes from .

taxation is better then doing it through dividends which have the whole amount taxed ,  doing it off your non payers only taxes the potion that represents a gain , not the whole payment.

so an income stream is not just something reserved for dividends


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## rgp (Sep 22, 2022)

HoneyNut said:


> Looks like the current recommendation is 'Buy', so apparently you should buy more while the price is so attractive.
> 
> View attachment 237602



 Well, I'm going to hang in there for now as I see no need for the money in the near future. But damn a $30.00 loss p/share since January is hard to take.

Maybe I'm just hard headed but , I just don't see P&G folding . They have been in business for 180+ years.

The current action by the fed sure as hell isn't helping. The DOW 30 has lost 7000 points since the end of January.


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