“With most of the Dow 30 companies up for the year, investors should be heartened that P&G remains in the ‘bargain bin.'”
In this article, Marc Courtenay describes the financial information investors can use to evaluate an investment in Procter & Gamble, a large global company with a worldwide customer base of 4.8 billion people. Information in this article includes a discussion of P&G’s
- Efforts to reduce costs by $10 billion.
- Current stock price and future price predictions.
- Decision to increase its dividends to stockholders.
- Projections for earnings growth and the anticipated effect on the stock’s share value.
For more information go to http://www.thestreet.com/story/12766334/1/procter-gambles-alan-lafley-on-activist-investors-watch-list.html
Teaching Suggestions
You may want to use the information in this blog post and the original article to
- Stress the importance of using financial information when evaluating a corporate stock for investment purposes.
- Discuss how financial information (dividends, earnings per share, dividend payout, etc.) relate to the share value for a stock like P&G.
Discussion Questions
- Because P&G is a large global company with a customer base of 4.8 billion people and is a component in the Dow Jones Industrial Average, do investors still need to evaluate the company before investing in its stock?
- Why are financial measures like dividends, earnings per share, dividend payout, and projections for earnings growth important when evaluating a stock investment?
Melissa Hart
Focus on Personal Finance, 7e 