Jim Cramer on Procter & Gamble: "I Think It's a Fine Level"

The Procter & Gamble Company (NYSE:PG) is one of the stocks Jim Cramer answered questions about. During the episode, a caller asked if it was too late for them to get into the stock, and Cramer replied:

“No, it’s not. You know, we just initiated the position for the trust. Why? Because it sells at 21 times earnings. Got about a 3% yield, that’s about as low as you ever get Procter, which of course is a dividend aristocrat. I think it’s a fine level.”

The Procter & Gamble Company (NYSE:PG) provides branded consumer goods across beauty, grooming, health care, home care, and family care. The company sells its products through renowned names such as Tide, Pampers, Gillette, Crest, Olay, and Febreze. Cramer mentioned the company during the November 11 episode and commented:

“Sometimes when stocks are doing badly, I get worried, not because I want to get out, but because I wonder if I might be missing a once-in-a-generational bottom. Those don’t come around all that often, of course. And right now, I’m concerned that we might be missing a bottom in a group of stocks that I haven’t particularly cared for at all, especially in a long time… The group that I’m talking about, the consumer packaged good stocks, too much inflation, not enough growth, growth being the magic elixir that makes your investment winners and it doesn’t have it. When you take a stock like Kimberly-Clark or Procter & Gamble, you’re pretty much bracing yourself for the house of pain, and the pain doesn’t seem to end until the stocks fall to the point where their dividend yields become competitive with the bond market… Well, what’s a good example? I use Procter & Gamble in How to Make Money in Any Market because the company’s so rigorous and inventive. Right now, Procter yields 2.85% and you know it has the scale and the science to make things cheaper.”

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Disclosure: None. This article is originally published at Insider Monkey.