The Procter & Gamble Company (PG): A Bull Case Theory

We came across a bullish thesis on The Procter & Gamble Company on Investing Lawyer’s Substack. In this article, we will summarize the bulls’ thesis on PG. The Procter & Gamble Company's share was trading at $150.65 as of August 1^st. PG’s trailing and forward P/E were 23.14 and 21.51, respectively according to Yahoo Finance.

Procter & Gamble (P&G), a Dividend King with an impressive 69-year history of consecutive dividend increases, offers investors a reliable income stream backed by strong fundamentals. With a current dividend yield of 2.6%, the company remains a top pick for dividend-focused portfolios. Operating in the consumer goods sector, P&G provides essential products spanning household cleaning and personal care, ensuring steady demand and resilience across economic cycles. Its recession-resistant portfolio and robust cash flows have enabled the company to perform well in both bull and bear markets, reinforcing its reputation as a defensive play for income-oriented investors.

The stock’s long-term price trend remains bullish, supported by strong fundamentals and consistent cash generation. Technically, the $150 region is a critical support level; holding this could pave the way for new all-time highs. Conversely, a breakdown below this level might lead to a retest of key supports in the $130 and $100 zones. Despite these technical considerations, P&G’s stability and ability to generate reliable cash flow make it an attractive choice for those seeking low-risk, long-term dividend growth.

With its unmatched track record, strong market position, and disciplined approach to returning capital to shareholders, P&G continues to stand out as one of the most dependable names for passive income. For investors prioritizing dividend security and moderate growth potential, P&G offers an appealing mix of yield, resilience, and consistency, making it a cornerstone for any dividend portfolio.

Previously we covered a bullish thesis on Colgate-Palmolive Company (CL) by Kontra in October 2024, which highlighted its strong presence in oral care and pet nutrition, along with pricing power and premiumization. The stock has depreciated about 16.87% since then as the thesis hasn’t played out yet. The thesis remains valid given its defensive positioning. Investing Lawyer shares a similar view on Procter & Gamble but focuses on dividend stability and income appeal.

The Procter & Gamble Company is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 88 hedge fund portfolios held PG at the end of the first quarter which was 79 in the previous quarter. While we acknowledge the potential of PG as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.