I've owned PG since the summer of 2011, which probably makes me a newbie. Over that time period PG has churned out a very respectable 21% in capital appreciation. The cherry on top is that PG has paid out 3.5% a year. Reinvested, that's brought total return to about 29%. The math just works out so well and keeps getting better over time.
Forget buying puts for protection, or trying to outsmart the market by trading in and out every time you get a "funny feeling". Reinvested dividends are your downside protection in bad times AND your leverage in good. Over the long term, this stock can do really, really well for patient invesetors. One day, many years from now, I plan to stop reinvesting in PG, and use the dividends to fund an awesome retirement. Congrats to those who have already made it.
Agree PG is a good stock for the longer term patient investor. I have owned some for the last 30+ years and the total return has been very good as you suggest. In my view, it belongs in many portfolios.
I will offer another opinion from my experience with PG. It is never as bad as the market and investment community thinks during their bad times and never as good as the the market thinks in their good times. $59 was a screaming buy price (and some on this board said so) and those who took advantage to load up did very well. In my view, it's a bit pricy now but still a good long-term stock to hold.
Also agree on your comment on blue chip stocks with good sustainable dividends. I have bought a lot of those over the last 2 years because they have compared very well to fixed income alternnatives. Of course, they are a different animal, but with Bernanke doing what he is, I think it would be foolish to hold a lot of fixed income at this point.
"One day, many years from now, I plan to stop reinvesting in PG, and use the dividends to fund an awesome retirement."
Same here. I hold several dividend stocks, with many annually increasing their divs, in my ROTH.
I've been long PG only since the fall of 2005, not even close to being considered a long term holder!
To think, only a bit more than a decade ago, dividends were considered "dead".
I'm retired now, but still buy each month via DRIP. Since I have only had the stock for a few years, I still reinvest for about the next five years, then will "harvest" the divys each quarter and increase yearly until it's time to R.I.P.