Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



2 Big Takeaways From Procter & Gamble's Earnings Report

Source: Procter & Gamble.

Procter & Gamble (NYSE: PG  ) posted earnings results this past week that were, in a word, underwhelming. Sales grew by 3% for the consumer goods giant, at the low end of P&G's full-year guidance. Meanwhile, profits ticked higher by just 5% despite huge cost cuts. 

In the video below, Fool contributor Demitrios Kalogeropoulos puts those results in perspective, noting that revenue growth significantly lagged that of competitor Colgate-Palmolive (NYSE: CL  ) , which managed to boost its sales by 6.5% last quarter. On the other hand, P&G's profit figure isn't as bad as it might seem, Demitrios argues, given that foreign currency movements lopped 12 percentage points off earnings growth. Stripping out those temporary headwinds, he notes, would have resulted in an impressive 17% profit jump as opposed to the 5% P&G reported. The bottom line is that shareholders can expect middling sales growth in the next year with much faster earnings improvement ahead -- and plenty of cash returns in the form of dividends and share repurchases.

Top dividend stocks for the next decade
The smartest investors know that dividend stocks like P&G simply crush their non-dividend paying counterparts over the long term. That's beyond dispute. They also know that a well-constructed dividend portfolio creates wealth steadily, while still allowing you to sleep like a baby. Knowing how valuable such a portfolio might be, our top analysts put together a report on a group of high-yielding stocks that should be in any income investor's portfolio. To see our free report on these stocks, just click here now.

Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2937295, ~/Articles/ArticleHandler.aspx, 8/31/2015 3:01:16 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Demitrios Kalogeropoulos

Demitrios covers consumer goods and media companies for, as well as broader moves in the economy.

Today's Market

updated 2 days ago Sponsored by:
DOW 16,643.01 -11.76 -0.07%
S&P 500 1,988.87 1.21 0.06%
NASD 4,828.33 15.62 0.32%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

8/28/2015 4:00 PM
PG $71.21 Down -0.27 -0.38%
Procter & Gamble CAPS Rating: ****
CL $63.35 Up +0.26 +0.41%
Colgate-Palmolive CAPS Rating: ****