Jim Cramer has spotlighted Procter & Gamble (PG) as a top portfolio holding, despite ongoing challenges in the consumer packaged goods sector. The stock stands out due to consistent earnings, resilient cash flow, and a robust dividend profile.
- Procter & Gamble (PG) reported $7.21 EPS in the trailing twelve months, up 6.3% year-over-year
- Free cash flow reached $12.4 billion in the most recent fiscal year
- PG maintains a 2.7% dividend yield with 12 consecutive years of dividend growth
- The stock trades at a P/E ratio of 21.7, below its 5-year average of 23.8
- PG’s share price outperformed the S&P 500 Consumer Staples Index by 1.8 percentage points over the past year
- BlackRock and Vanguard collectively own over 18% of PG’s outstanding shares
Jim Cramer has named Procter & Gamble (PG) as a standout pick in his investment portfolio, emphasizing its defensive qualities and long-term stability. The stock, trading at approximately $158 per share in late December 2025, has demonstrated resilience amid broader weakness in consumer staples, a sector marked by slowing growth and inflationary pressures. Cramer cited PG’s ability to maintain 12 consecutive years of dividend growth, with the current yield standing at 2.7%, as a key strength. The company reported a trailing twelve-month earnings per share (EPS) of $7.21, reflecting a year-over-year increase of 6.3%, and generated free cash flow of $12.4 billion in the most recent fiscal year. These figures underscore PG’s operational strength and capacity to return value to shareholders. Despite a 4.2% decline in the sector’s average performance over the past 12 months, PG’s share price has held steady, outperforming the S&P 500 Consumer Staples Index by 1.8 percentage points. Cramer attributes this to PG’s diversified product lineup—spanning health, beauty, and household goods—and its disciplined cost management, including a $1.5 billion efficiency initiative launched in 2024. Investors in PG include large institutional holders such as BlackRock and Vanguard, which collectively own over 18% of the company’s outstanding shares. The stock’s price-to-earnings ratio of 21.7 remains below its 5-year average of 23.8, suggesting potential upside if consumer demand stabilizes.