CNBC's Jim Cramer has urged investors to consider buying Procter & Gamble (PG) stock, highlighting its defensive qualities and consistent dividend growth during periods of market uncertainty. The recommendation comes as broader market sentiment remains cautious.
- Procter & Gamble (PG) has reported 2.4% average same-store sales growth in North America over three consecutive quarters.
- PG’s forward P/E ratio is 21.5, with a 2.9% dividend yield and 68% payout ratio.
- The company has increased dividends for 64 consecutive years.
- PG’s beauty and grooming segment maintains a 98% operating margin.
- PG’s stock rose 3.2% in two days following Cramer’s comment.
- Cramer’s endorsement focuses on PG’s defensive attributes and capital return history.
Jim Cramer, prominent financial commentator, has publicly advocated for Procter & Gamble (PG) as a strategic addition to portfolios in the current economic climate. He emphasized the company’s long-standing presence in the consumer staples sector, citing its ability to maintain revenue stability even during macroeconomic fluctuations. Cramer pointed to PG’s consistent quarterly earnings performance, noting that the company has delivered positive same-store sales growth in three consecutive quarters, with an average increase of 2.4% in its core North American markets. The stock currently trades at a forward price-to-earnings ratio of 21.5, which Cramer described as reasonable given the company’s 98% operating margin in its beauty and grooming segment. He also highlighted PG’s commitment to shareholder returns, with a dividend payout ratio of 68% and a 64-year streak of consecutive annual dividend increases. The current dividend yield stands at 2.9%, outpacing the S&P 500’s average of 1.7%. Market impact is expected to be moderate, with PG’s stock showing a 3.2% rally in the two days following Cramer’s segment. The recommendation is likely to draw renewed attention from income-focused investors and ETF managers tracking consumer staples. While the move is sentiment-driven rather than based on new financial disclosures, the visibility of a high-profile market figure endorsing a blue-chip stock can influence trading volumes and investor allocation decisions.