Why This Dividend Aristocrat Isn't Worth Buying Today
Most investors should focus on buying well-run companies. That sounds obvious, but it can be harder than you think. One shortcut to finding such industry-leading names is to start with companies that have increased their dividends for at least 25 consecutive years, also known as Dividend Aristocrats. You don't achieve that kind of dividend track record by accident.
On that score, a company like Procter & Gamble (NYSE: PG), with over six decades of dividend hikes under its belt, looks like a top pick. Unfortunately, it's not such a great opportunity today. Here's why a great company isn't always a great buy.
At first blush, investors will probably love what they see at P&G. It sells products that people around the world use on a daily basis and need to be replaced frequently. Nothing it sells, from toothpaste to paper towels, is so expensive that consumers would be likely to stop using the products during hard times. In fact, customers often get attached to its products, sticking with them despite a premium price no matter what is going on in the economy. For these reasons, like many of its consumer staples peers, it is seen as a defensive stock.
Source Fool.com