US tariffs also weigh on Procter & Gamble's outlook The Ariel and Pampers group Procter & Gamble is gradually feeling the effects of consumer restraint, the trade dispute and US tariffs. The consumer giant has therefore lowered its forecast for 2025: sales are only expected to increase organically by 2%, whereas management had previously forecast 3 to 5%.
Overall, Procter & Gamble remains a defensive stock with expected annual earnings growth of 4% and a reliable dividend aristocrat (yield: 2.4%), which has always increased or at least kept its payout constant over the past 69 years. The share is trading 11% below its all-time high and is fairly valued with a P/E ratio of 23.
@Smudeo Tariffs are coming and tariffs will go again, but the back and forth of 🍑 has meant that the impact has not yet been so strong. But if the tariffs hit first, then 🍑 will have to row back again anyway. My main bet is on PG's cost-cutting program, which will take effect in a few quarters and then the share price will go up again.
@Petzi-Port Basic consumer goods always go, a swing set for 12 months +. Target 20%+😅 Dividends were not a reason to buy, but of course I also like to take them with me
Because I often ask myself why so many people have Procter or Unilever in their portfolios. And how attractive does the dividend yield have to be to accept a poor performance of just 100% in 10 years?