Tuesday, August 18, 2009

SYSCO & P&G still look good

With the run up the market has had since the March lows, it has become difficult to find stocks with attractive valuations. Many of the more cyclical stocks, as well as financials have really run up and I'm not sure that future earnings will justify the current prices in some cases.

Luckily there are still a few good buys out there. For dividend growth investors, it's a nice bonus when a company is still raising it's dividend through thick and thin. These two firms have solid balance sheets and fit that bill. They have stable product offerings and they've navigated through tough times before. Their dividends are growing and very secure. I've added to my positions in both companies over the past 6 months, and I am considering doing so again at these valuations.

Food distributor SYSCO (SYY) is yielding 4%, and trading at a P/E of 13.6x.

Consumer products giant, Procter & Gamble (PG) is yielding 3.4%, and trading at a P/E of 14.7x.

There are headwinds afoot for both of these firms, but I believe that as long term investments they may be ripe for the picking right now. I may put my money where my mouth is in the near future. For my further thoughts see the posts below.

Added More P&G

Took a Helping of Sysco


POL said...

I think you've made a nice pick MG,
I also bought more PG a few days ago.
The canadian dollar is stronger than what it's been a few months ago so it seems attractive for me to buy shares in USD.
I Think their new BASICS line (for Charmin and Tid product) might attract those cheaper customers while their standard product will keep selling... What are your toughts about that?


Chris said...

I have buy orders for both...but still have to drop a dollar each

FB @ FabulouslyBroke.com said...

I bought PG a while back and am seeing some good stability in the stock -- not a lot of volatility in toothpaste!

My other winner was ING... that stock really surprised even me.