Portfolio Update
The FiveTwenty portfolio received no dividends in the past week.
| Past Week Dividend | $0 |
| Current Quarter Dividend (Q1 2023) | $251.66 |
| LifeTime Dividend | $8,360.10 |
| Estimated Annual Dividend | $8,100.57 |
The capital allocation for the week of 01/22/2023 to 01/28/2023 will be used to add to our position in Procter & Gamble (NYSE: PG).
PG – Position Update
Since our last check-in on PG in week 43 of 2023, the company reported Q2 2023 earnings on 01/19/2023. Furthermore, the share price increased 11.2% from $128.58 to $142.97.
| TTM | Prev. Update | 10-year median | |
| Dividend Streak | 66 years | 66 years | |
| Yield | 2.56% | 2.81% | 2.95% |
| Payout Ratio | 63.31% | 62.13% | 70% |
| P/E | 24.78 | 22.29 | 23.86 |
Q2 2023 earnings report
Did PG’s latest earnings report raise any warning flags?
For another quarter, the strength of the US dollar provided considerable headwinds for PG to the tune of a negative 6% impact on revenues. Excluding the impacts of currency exchange, the company saw an organic sales increase of 5% driven by 10% increase in higher pricing and 1% increase from positive product mix, that were partially offset by a 6% decrease in shipment volumes. However, due to the foreign exchange impact, overall, PG’s revenue decreased (1)%, net income decreased (7)%, and EPS were (4)% lower
| Revenue (in millions) | Net Income (in millions) | EPS . | |
| Q2 2022 | $20,953 | $4,223 | $1.66 |
| Q2 2023 | $20,773 | $3,933 | $1.59 |
| % Change | (1)% | (7)% | (4)% |
Additional noteworthy developments during the quarter:
- PG returned $4.2 billion of cash to shareholders vis $2.2 billion in dividend payments and $2 billion in stock repurchases.
Looking ahead, PG raised its guidance for the remainder of FY 2023. The company sees revenue in the range of -1% to 0%, up from previous guidance of -3% to -1%. Foreight exchange headwinds are now expected to be about 5%. PG also raised its organic sales growth to a range of 4% to 5% and maintained its outlook for EPS growth of 0% to 4%.
Thesis
Why are we adding to our position in PG?
With the financial performance in during the latest quarter, PG has once again continued to demonstrate the resilience of its business. Therefore, we continue to build our position in the company by taking advantage of the slight drop in share price following its latest earnings report.
Previous Articles
- 2022 Week 43: Procter & Gamble (NYSE: PG)
- 2022 Week 24: Procter & Gamble (NYSE: PG)
- 2021 Week 20: Procter & Gamble (NYSE: PG)
- 2021 Week 16: Procter & Gamble (NYSE: PG)
hoto by Giorgio Trovato on Unsplash