Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!

Quick Read

JNJ and ARCC anchor opposite ends of the yield spectrum, with $4 million at 3% on one side and $1.4 million at 10% on the other, each carrying proportional principal risk. High-yield portfolios start with larger checks, but flat payouts erode purchasing power while dividend-growth income compounds over 10 to 15 years. Are you ahead, or behind on retirement? SmartAsset's free tool can match you with a financial advisor in minutes to help you answer that today. Each advisor has been carefully vetted, and must act in your best interests. Don't waste another minute; learn more here.

Twelve thousand dollars a month in dividend income sounds simple enough until you start doing the math. Many investors assume they can reach that number with a seven-figure portfolio and a handful of high-yield stocks. In reality, the capital required ranges from about $1.4 million to more than $4 million, depending on the yield you target, the risks you are willing to accept, and how much future dividend growth you are willing to sacrifice for income today.Thinkstock

Before sizing the portfolio, size the goal. Twelve thousand dollars a month works out to $144,000 a year, which is roughly what a senior engineer, experienced attorney, or successful small-business owner might earn. But replacing a salary and replacing a lifestyle are not the same thing. Once payroll taxes, retirement contributions, commuting costs, and other work-related expenses disappear, many households need substantially less money than their gross income suggests. The capital required to replace your spending can be 25% to 35% lower than the capital required to replace your paycheck. Run that number first. Then decide how much risk you are willing to take to get there.

The Conservative Tier: 3% to 4% Yield

At a 3.5% yield, generating $144,000 takes roughly $4.1 million in invested capital. At 4%, the figure drops to $3.6 million. This is the range for dividend-growth blue chips and broad equity income funds.

Johnson & Johnson (NYSE:JNJ) yields 2.3%, a touch below the tier but with 64 consecutive years of dividend increases. The board lifted the quarterly payout to $1.34 in May 2026, up from $0.285 back in 2005. Procter & Gamble (NYSE:PG) yields 3.0% and just delivered its 70th consecutive annual dividend increase. Schwab U.S. Dividend Equity ETF (NYSEARCA:SCHD) charges 6 basis points and holds names like Merck, Chevron, Lockheed Martin, and Coca-Cola, giving you sector breadth in one ticket.

The tradeoff is obvious. You need the most capital. The payoff is principal that tends to appreciate and an income stream that historically outpaces inflation.

Story Continues

The Moderate Tier: 5% to 7% Yield

At 6%, the required capital falls to $2.4 million. This range is where REITs, preferred shares, covered-call ETFs, and high-dividend equity funds live.

Are you ahead, or behind on retirement? SmartAsset's free tool can match you with a financial advisor in minutes to help you answer that today. Each advisor has been carefully vetted, and must act in your best interests. Don't waste another minute; learn more here.

Realty Income (NYSE:O) pays monthly and yields 5.4%, putting the capital requirement near $2.7 million. The triple-net REIT has logged 114 consecutive quarterly dividend increases and 670 consecutive monthly payments, with portfolio occupancy at 99% and 2026 AFFO guidance of $4.41 to $4.44 per share. Outside REITs, covered-call income ETFs and preferred-stock funds round out the tier.

Dividend growth slows in this band. Realty Income raised the monthly payment from $0.27 to $0.2705 earlier this year, a meaningful but measured bump. Covered-call funds cap your upside in rallies. You trade a slice of long-term appreciation for current cash.

The Aggressive Tier: 8% to 12% Yield

At 10%, the math becomes seductive: $1.4 million generates $144,000. Ares Capital (NASDAQ:ARCC), the largest publicly traded business development company, yields 10.2% with a $0.48 quarterly distribution that has held steady for 8 consecutive quarters. The portfolio earns a weighted average yield of 10.3% and is 72% floating rate. Mortgage REITs, leveraged covered-call funds, and high-yield bond funds occupy similar ground.

Read the price chart with eyes open. ARCC shares are down about 6% over the past year and trade below book value at almost $20. The income is high; the principal moves.

The Compounding Trap Most Income Investors Miss

Johnson & Johnson's quarterly dividend grew from $0.285 in 2005 to $1.34 in 2026, roughly a fivefold increase. Ares Capital's quarterly payout rose from $0.40 in 2020 to $0.48 today and has been flat for the past two years. That difference highlights the tradeoff between yield and growth.

A portfolio generating $144,000 annually from dividend-growth stocks may produce substantially more income a decade from now. A high-yield portfolio starts with a larger check, but that check may barely grow at all. Meanwhile, inflation keeps reducing its purchasing power. The danger is focusing so heavily on today's yield that you overlook what your income stream might look like ten or fifteen years down the road.

Three Moves That Matter

Audit your actual spending against your salary. The national savings rate has fallen to 3.7%, which means most paychecks are fully consumed, but pre-retirement expenses like commuting and retirement contributions still disappear at the finish line. Blend the tiers. A portfolio that is 60% conservative, 25% moderate, and 15% aggressive can land near a 5% blended yield with meaningful growth, cutting capital required to roughly $2.9 million without parking everything in BDCs. Place high-yield holdings inside an IRA or Roth. Ordinary-income distributions from BDCs and mortgage REITs are taxed at your marginal rate; qualified dividends from JNJ or PG are not. Asset location can be worth a full percentage point of after-tax yield.

If You’ve Been Thinking About Retirement, Pay Attention (sponsor)

Retirement planning doesn’t have to feel overwhelming. The key is finding expert guidance, and SmartAsset’s simple quiz makes it easier than ever for you to connect with a vetted financial advisor. Here’s how:

Answer a Few Simple Questions. Get Matched with Vetted Advisors Choose Your  Fit

Why wait? Start building the retirement you’ve always dreamed of. Get started today! (sponsor)

View Comments

Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!

Quick Read

JNJ leads the 45% dividend-growth sleeve in the giving bucket, where decades of healthcare dividend raises anchor an honest planning range of 4 to 6 percent. O's 5.3% monthly yield and DUK's EPS growth target of 5 to 7% fill the REIT and utility sleeves that stabilize the giving portfolio's income stream. Roughly $250,000 of dedicated dividend capital, kept separate from base retirement assets, funds $15,000 a year in grandparenting at a realistic 6% blended yield. Are you ahead, or behind on retirement? SmartAsset's free tool can match you with a financial advisor in minutes to help you answer that today. Each advisor has been carefully vetted, and must act in your best interests. Don't waste another minute; learn more here.

A Utah couple with two children and four grandchildren nearby has a retirement goal that has nothing to do with yachts or sports cars. They want to be the grandparents who can say "yes." Yes to helping with travel hockey. Yes to a week at the lake. Yes to Disney. Yes to contributing toward a first car, a senior trip, or a college expense. The question is not whether they can afford retirement. It is whether they can afford the kind of grandparents they want to be.Gorodenkoff / Shutterstock.com

That distinction matters. Most retirement plans focus on housing, healthcare, food, and travel. Few include a dedicated line item for family generosity. But once a couple decides they want to provide meaningful financial help to children and grandchildren, that spending needs to be treated like any other retirement expense. The challenge is creating enough income to support those gifts year after year without steadily eroding the portfolio that must support the rest of retirement.

Three Tiers Of Saying Yes

Start with the family-giving budget alone, layered on top of normal retirement expenses. The goal here is not to fund retirement itself. It is to create a dedicated pool of income for helping children and grandchildren without constantly dipping into principal.

The Helpful Grandparents tier funds about $5,000 a year of youth sports, music lessons, birthday gifts, school trips, and the occasional extra that makes a grandchild's life easier. At a 4% portfolio yield, that requires roughly $125,000 of dedicated capital. At 6%, about $83,000. At 8%, about $62,500.

The Generous Grandparents tier funds about $15,000 a year. This is where the grandparents start saying yes more often: sports and camps, meaningful 529 contributions, help with special opportunities, and a substantial contribution toward a family vacation every few years. The capital required is roughly $375,000 at a 4% yield, $250,000 at 6%, and $187,500 at 8%.

Story Continues

The Family Legacy Builders tier funds about $30,000 a year. At this level, the grandparents can help with first cars, make significant college contributions, cover much of a family vacation, and absorb the occasional emergency without disrupting their own retirement plan. That requires roughly $750,000 at a 4% yield, $500,000 at 6%, or $375,000 at 8%, again as a separate bucket on top of the assets needed to fund their own retirement.

Are you ahead, or behind on retirement? SmartAsset's free tool can match you with a financial advisor in minutes to help you answer that today. Each advisor has been carefully vetted, and must act in your best interests. Don't waste another minute; learn more here.

Taxes matter. Depending on the mix of qualified dividends, interest income, REIT distributions, and other income sources, retirees may keep only 80 to 85 cents of each yield dollar after federal and state taxes. A couple hoping to spend $15,000 a year on children and grandchildren may therefore need an income stream closer to $17,000 to $19,000 annually to reach that goal consistently.

Building The Income Engine

An 8% yield assumption is aggressive and often requires reaching into preferred shares, mortgage REITs, covered-call funds, or other income vehicles that can sacrifice principal stability when markets turn against them. For grandparents whose goal is dependable support over twenty years or more, a 4% to 6% portfolio yield is the more realistic planning range. The objective is not maximizing income this year. It is making sure the "yes" fund is still there a decade from now.

A workable giving portfolio might consist of roughly 45% dividend-growth blue chips in sectors such as healthcare and consumer staples, where payouts have increased steadily for decades, 20% in income-producing real estate, 15% in utilities and other defensive income investments, 15% in a Treasury ladder that locks in current yields, and 5% in cash. The cash allocation is more important than it looks. Holding one to two years of planned gifts and family assistance in cash helps ensure that a market downturn never forces the grandparents to tell a grandchild no simply because stocks happen to be down that year.

The Compounding Power Of Memories

Consider a couple with $250,000 dedicated to family giving. They can leave that money untouched and eventually pass it on as part of an inheritance, or they can use it to generate roughly $15,000 a year for two decades of grandparenting. The inheritance may arrive when the grandchildren are in their 30s or 40s, established in their careers and raising families of their own. The annual giving arrives when it can shape decisions: helping a grandchild stay in music lessons, attend summer camp, join a travel team, visit Disney with the family, or choose a college that would otherwise be out of reach. Even more importantly, participating financially in grandchildren's activities often translates into time and communication with those grandchildren about those activities. Sharing life experiences can feel far more meaningful than simply sharing dollars.

Money has timing value as well as dollar value. A contribution made when a child is 12 or 17 often has a larger impact than the same dollars arriving decades later. The purpose of the dividend-growth portion of the portfolio is to help that giving power keep pace with inflation so the grandparents can keep saying yes as the years go by.

The Real Risk Is Dying With Unused Assets

Many retirees spend years worrying about running out of money. Far fewer worry about the opposite outcome: reaching their late 80s with a larger portfolio than they started retirement with and a long list of opportunities they never funded. The purpose of a family-giving budget is not to preserve capital. It is to convert a portion of that capital into experiences, opportunities, and memories while everyone is young enough to enjoy them.

For a couple targeting the Generous Grandparents lifestyle, the number to remember is roughly $250,000 of dedicated capital. At a realistic 6% blended yield, that portfolio can support about $15,000 a year of family generosity, separate from the assets needed to fund their own retirement. The goal is not simply to leave money behind. It is to put some of it to work while the grandchildren still call every week.

If You’ve Been Thinking About Retirement, Pay Attention (sponsor)

Retirement planning doesn’t have to feel overwhelming. The key is finding expert guidance, and SmartAsset’s simple quiz makes it easier than ever for you to connect with a vetted financial advisor. Here’s how:

Answer a Few Simple Questions. Get Matched with Vetted Advisors Choose Your  Fit

Why wait? Start building the retirement you’ve always dreamed of. Get started today! (sponsor)

View Comments

Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!

Is PG a good stock to buy? We came across a bullish thesis on The Procter & Gamble Company on r/investing_discussion by Variant_Invest. In this article, we will summarize the bulls' thesis on PG. The Procter & Gamble Company's share was trading at $149.05 as of June 10th. PG's trailing and forward P/E were 21.79 and 20.92 respectively according to Yahoo Finance.Barclays Remain a Buy on Newell Brands Inc (NWL)

Nejron Photo/Shutterstock.com

The Procter & Gamble Company provides branded consumer packaged goods worldwide. PG is being priced by the market as a slow-growing consumer staple, but that framing underappreciates the structural improvements underway in its business model. Over 2022–2024, the company relied heavily on price increases to defend margins, which successfully protected profitability but obscured underlying volume pressure as consumers traded down to private label alternatives.

Read More: 15 AI Stocks That Are Quietly Making Investors Rich

Read More: Undervalued AI Stock Poised For Massive Gains: 10000% Upside Potential

That bear case assumption is now being challenged as volume trends begin to stabilize and organic growth shifts from price-led expansion toward improving unit volumes. A key underappreciated driver is the company's investment in AI-enabled demand forecasting and supply chain optimization, which has enhanced manufacturing efficiency and improved fixed cost absorption across its global footprint, driving approximately 270 basis points of productivity gains that appear structural rather than cyclical.

Emerging markets exposure, often dismissed due to FX volatility, represents a longer-term tailwind once currency noise is normalized, supporting sustained organic growth. At roughly 23x forward earnings, Procter & Gamble trades at a modest premium to the broader market, but this valuation understates its cash generation quality, 66-plus consecutive years of dividend growth, and strong balance sheet resilience.

It remains a high-quality compounder where improving operational efficiency, stabilizing volumes, and disciplined capital allocation collectively create a favorable long-term rerating opportunity rather than a mature, low-growth staple narrative. Overall, the market continues to misprice the durability of its margins and volume recovery, creating room for multiple expansion as operational improvements compound over time and sentiment shifts back toward quality compounders.

Previously, we covered a bullish thesis on Colgate-Palmolive (CL) by Kontra in October 2024, which highlighted its oral care leadership, emerging markets exposure, pricing power, and high ROIC quality compounder profile. CL's stock price has depreciated by approximately 10.46% since our coverage. Variant_Invest shares a similar view but emphasizes Procter & Gamble (PG)'s AI-driven supply chain efficiency and volume recovery as key drivers of rerating versus CL's defensive compounder narrative.

Story Continues

The Procter & Gamble Company is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 78 hedge fund portfolios held PG at the end of the first quarter which was 90 in the previous quarter. While we acknowledge the risk and potential of PG as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than PG and that has 10,000% upside potential, check out our report about this cheapest AI stock.

Disclosure: None.

View Comments

Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!

Product Image of Oral-B iO + Crest Pro-Health

Research uncovers strong dental and healthcare education opportunity, with 80% of Americans saying oral care would feel more important if they understood its impact on overall health

CINCINNATI, June 11, 2026--(BUSINESS WIRE)--P&G, the maker of Crest and Oral-B, and the American Academy of Family Physicians (AAFP) are teaming up to help Americans better understand the connection between oral health and overall health – and the simple daily habits that can support better health outcomes.

A national survey of more than 2,000 Americans*, conducted by Ipsos in partnership with P&G and supported by the AAFP, found that while 76% of Americans say they are motivated to take care of their oral health, only 3% of Americans associate oral health with whole-body health when polled.

The findings highlight that nearly half of Americans (44%) say they have never heard of the connection between oral health and cardiovascular disease, with awareness dropping even further for other conditions including diabetes (55%), respiratory disease (68%), pregnancy complications (67%), and Alzheimer's disease (77%).

When left untreated, clinical evidence shows plaque bacteria and inflammation can progress beyond the mouth, reinforcing the important connection between oral health and overall wellbeing.

"Americans clearly care about oral health, but many still don't fully understand how closely it's connected to overall wellbeing," said Stephanie Gans, DDS, Senior Scientist and Professional & Scientific Relations Manager for Crest + Oral-B. "At the same time, the survey findings show a real opportunity: 80% of Americans say oral care would feel more important if they better understood its impact on overall health, and 92% say proof would motivate them to improve their routine. We're helping people understand that simple, everyday habits can play an important role in supporting long-term health."

Key findings from the national survey include:

AWARENESS GAP: Americans Don't Fully Understand the Mouth-Body Connection

Nearly half of Americans (44%) have never heard of the connection between oral health and cardiovascular disease

Among Gen Z respondents, that number rises to 57% Awareness is even lower for other conditions:

Diabetes (55%) Pregnancy complications (67%) Respiratory disease (68%) Alzheimer's (77%) Only 12% of respondents ranked oral health among their top three health behaviors, far behind exercise (59%) and healthy eating (52%)

REALITY CHECK: Oral Care Is Often One of the First Healthy Habits to Slip

Story Continues

Nearly 3 in 4 say holidays or big events have led them to skip or scale back oral care 53% skip brushing at least once a day Some of the biggest disruptors to oral care routines are: tiredness (41%), being sick (40%), routine changes (39%), being busy (36%), and stress (29%) Three times more people track their steps (30%) than oral health symptoms (10%)

"The mouth is one of the earliest and most accessible indicators of overall health," said Dr. Sukirth Ganesan, DDS, PhD, MPH and Director of the Advanced Education Program in Periodontics at the Iowa College of Dentistry and Dental Clinics. "We can catch important health signals earlier, but only if patients and health care providers recognize the signs. Symptoms like bleeding gums can indicate underlying inflammation or infection and are often overlooked. This survey underscores the need for better education, earlier intervention, and stronger collaboration between dental and medical professionals."

While physicians and dental professionals can help patients understand the importance of oral health, P&G is working to make oral health easier to achieve. A simple routine, focused on brushing twice a day for two minutes with a stannous fluoride toothpaste that provides 24-hour antibacterial protection like Crest Pro-Health and an electric toothbrush with a dentist-inspired round head like the Oral-B iO Series, can help remove more plaque and improve gum health, supporting not just a healthier smile, but overall wellbeing. In fact, the Oral-B iO Series electric toothbrush with its oscillating-rotating brush head and Crest Pro-Health toothpaste together deliver 10x healthier gums** than brushing with a regular toothpaste on a manual toothbrush.

"Too often, care for the mouth and the rest of the body happen independently. When physicians and dental professionals work together, we can improve patients' understanding of the connection between oral care and whole body health," said Rebecca Fuller Beeler, PhD, Vice President, Integrated Marketing Communications at the AAFP. "Family physicians can play an important role as the first line of defense against preventable illness and disease by also promoting good oral health during patient visits."

Together, P&G, Crest, Oral-B and the AAFP hope to encourage Americans to view oral care not simply as part of a daily hygiene routine, but as an essential part of supporting overall health and wellness.

The American Academy of Family Physicians does not endorse The Procter & Gamble Company, Crest, Oral-B, or any other specific company or product.

About Oral-B

Oral-B is the worldwide leader in the over $5 billion brushing market, drawing upon 75+ years of expertise to empower healthier lives for all through better oral care. The brand features a wide variety of products to build a personalized oral care routine for the best clean every time, including manual, battery and electric toothbrushes for children and adults, and interdental products such as dental floss. Oral-B's iO Series electric toothbrushes feature the latest in brushing technology, with a dentist-inspired round brush head that removes 100% more plaque than regular manual brushes, for cleaner teeth and healthier gums.

About Crest

Since its launch in 1955, Crest has been at the forefront of oral care innovation, empowering healthier smiles for 70 years. Backed by decades of research and trusted by dental professionals, Crest offers a full portfolio of products designed to meet the evolving needs of families and individuals, from cavity protection and enamel strengthening to advanced whitening, gum health, and sensitivity relief. Beyond toothpaste, Crest provides comprehensive oral care solutions, including mouthwash, whitening treatments, and daily regimens that work together to help maximize the benefits of brushing.

About P&G

P&G serves consumers around the world with one of the strongest portfolios of trusted, quality, leadership brands, including Always®, Ambi Pur®, Ariel®, Bounty®, Charmin®, Crest®, Dawn®, Downy®, Fairy®, Febreze®, Gain®, Gillette®, Head & Shoulders®, Lenor®, Olay®, Oral-B®, Pampers®, Pantene®, SK-II®, Tide®, and Whisper®. The P&G community includes operations in approximately 70 countries worldwide. Please visit https://www.pg.com for the latest news and information about P&G and its brands. For other P&G news, visit us at https://www.pg.com/news.

*This P&G/Ipsos poll was conducted April 3 – April 14, 2026, by Ipsos using the probability-based KnowledgePanel®. This poll is based on a nationally representative probability sample of 2,052 adults, age 18 or older. The margin of sampling error is plus or minus 2.21 percentage points at the 95% confidence level, for results based on the entire sample of adults. The study was conducted in English. The data for the total sample were weighted to adjust for gender by age, race/ethnicity, education, Census region, metropolitan status, and household income.

**J Dent Res Vol #105(Spec Iss A ):531

View source version on businesswire.com: https://www.businesswire.com/news/home/20260611044736/en/

Contacts

MEDIA CONTACT: Zeno Group for P&G, pgwbh@zenogroup.com

View Comments

Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!

Track your investments for FREE with Simply Wall St, the portfolio command center trusted by over 7 million individual investors worldwide.

Procter & Gamble (NYSE:PG) has confirmed a significant leadership reshuffle following the appointment of Shailesh Jejurikar as CEO. Three senior female executives who had been viewed as potential CEO candidates, including Baby, Feminine and Family Care chief Fama Francisco, are set to retire by 2026. The company also reaffirmed plans to cut more than 3,500 jobs globally, representing over 6% of its workforce, as part of a two year restructuring program.

For investors watching NYSE:PG, the leadership changes and workforce reduction update arrive with the stock at $149.05. Over the past week, the share price is up 6.3%, and over the past 3 years the stock has returned 10.0%, with a 5 year return of 27.5%. The shares are currently down 5.4% over the past year, which may prompt closer attention to how these corporate moves affect sentiment.

The retirements and restructuring plan could influence how Procter & Gamble prioritizes its categories, allocates capital and retains senior talent. Readers may want to track how the refreshed leadership team outlines objectives and whether the job cuts translate into clearer cost goals, margin focus or refreshed investment priorities in coming quarters.

Wall Street's queuing for one rocket. While SpaceX counts down to its IPO, other companies tied to the new space race are already in orbit. → 20 Compelling Space Companies watchlist · Global Space Race Investing Ideas screener · Scan the sector by valuation on Rocket Lab's valuation page.NYSE:PG 1-Year Stock Price Chart

Does the team leading Procter & Gamble have what it takes? See our full breakdown of the management team's track record and compensation.

Quick Assessment

✅ Price vs Analyst Target: At US$149.05, PG trades about 9% below the US$163.77 analyst target midpoint, with estimates spanning US$145 to US$186. ✅ Simply Wall St Valuation: The stock is assessed as trading 20.2% below estimated fair value, signalling a valuation discount. ✅ Recent Momentum: A 4.0% gain over the last 30 days suggests investors have recently responded positively to the stock.

There's only one way to know the right time to buy, sell or hold Procter & Gamble. Head to Simply Wall St's company report for the latest analysis of Procter & Gamble's Fair Value.

Key Considerations

📊 The leadership exits and workforce reduction could reshape how PG allocates capital between core categories, productivity and brand support. 📊 Watch management turnover, restructuring charges, margin trends and any guidance changes as the two year program progresses. ⚠️ With one identified risk relating to debt, monitor leverage and interest costs in case restructuring savings do not materialize as expected.

Story Continues

Dig Deeper

For the full picture including more risks and rewards, check out the complete Procter & Gamble analysis. Alternatively, you can check out the community page for Procter & Gamble to see how other investors believe this latest news will impact the company's narrative.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include PG.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

View Comments

Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!

Quick Read

PG has raised its dividend for 70 consecutive years, growing the quarterly payout from $0.29 in 1999 to $1.09 today, yielding 2.88%. P&G's FY2025 free cash flow of $14B covered its $9.9B dividend payout at 1.42x, well above its long-term average. With a beta of 0.39 and dividends paid through the Great Depression and two world wars, P&G trades stability for growth-market underperformance. Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and P&G didn't make the cut. Grab the names FREE today.

Procter & Gamble (NYSE:PG) is a stock built for multi-decade ownership because its portfolio of daily-use staples generates the kind of inelastic cash flow that funds a dividend through every economic regime humanity has thrown at it since 1891.Scott Olson / Getty Images

Pillar 1: A Business Built to Outlast Cycles

The forever case starts with what P&G actually sells. Tide, Gillette, Crest, and Pampers are not discretionary purchases. Consumers replace detergent, razors, toothpaste, and diapers on a schedule dictated by biology and household routine, not by the unemployment rate. That demand profile shows up in the BEA data: food spending alone rose from $1,513.8B in January 2025 to $1,562.8B in April 2026, and total personal consumption expenditures climbed from $20,462.2B to $21,979.4B over the same window. Households keep buying staples.

That inelasticity gives P&G pricing power. With CPI running at 332.4 in April 2026, the company pushed through tariff and commodity headwinds totaling roughly $400 million and $150 million after-tax while still posting Q3 FY26 organic growth across all five segments and an operating margin (TTM) of 23.1%.

Pillar 2: Income That Compounds Without Drama

P&G is in its 70th consecutive year of dividend increases, with roughly $10 billion in dividends and $5 billion in buybacks planned for fiscal 2026. The current quarterly payout is $1.0885, up from $0.9407 in early 2024 and roughly $0.285 in 1999. The dividend yield sits at 2.88%.

Coverage is the part retirees should focus on. FY2025 free cash flow came in at $14.045 billion against a dividend payout of $9.872 billion, a coverage ratio of 1.42x. The eight-year average is 1.61x. Cash conversion ran at 111% in FY2025. The check clears with room to spare.

Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and P&G didn't make the cut. Grab the names FREE today.

Pillar 3: Survival Built Into the Balance Sheet

P&G has paid a dividend through the Great Depression, two world wars, the 1970s inflation shock, the 2008 financial crisis, and the recent tariff cycle. Beta sits at 0.385, institutional ownership at 71.95%, and return on equity at 31.1%. Trailing P/E is 21x on diluted TTM EPS of $6.83. None of those readings flash danger.

Story Continues

The Scenario Where It Lags

In a risk-on bull market led by tech and growth, P&G will trail. Shares are down 5.94% over the past year, currency-neutral core EPS was flat year-over-year in Q3 FY26, and core gross margin compressed 100 basis points on tariff costs. That underperformance is the price of owning a business that does not need a tailwind to function. The forever thesis is about collecting a growing dividend through the next forty years of unknown markets, which is exactly what this balance sheet is engineered to do.

For long-horizon income investors, the setup is straightforward: a defensive cash machine with a 70-year dividend growth record and coverage well above 1x.

Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and P&G didn't make the cut. Grab the names FREE today.

View Comments

Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!

Quick Read

Generating $120,000 in annual dividends requires $3 million to $4 million at a conservative 3% to 4% yield, but only $857,000 to $1.5 million at an aggressive 8% to 14% yield. A conservative dividend-growth portfolio paying $120,000 today can compound to over $250,000 annually within 12 years at dividend growth rates of 6 to 9 percent, outpacing high-yield alternatives over the long term. Sheltering BDCs and mortgage REITs inside an IRA while holding qualified-dividend stocks like JNJ and KO in taxable accounts maximizes after-tax income. Are you ahead, or behind on retirement? SmartAsset's free tool can match you with a financial advisor in minutes to help you answer that today. Each advisor has been carefully vetted, and must act in your best interests. Don't waste another minute; learn more here.

Ten thousand dollars a month in dividend income works out to $120,000 per year. That is enough to cover the rent on a luxury waterfront condo in Miami Beach, one of the most expensive rental markets in the country. The math that gets you there is simple: $120,000 divided by your portfolio yield equals the capital required. The interesting part is not the calculation itself, but the tradeoffs investors make at each point along the yield curve.Anthony Giarrusso / Shutterstock.com

The Conservative Tier: 3% to 4% Yield

This is the dividend-growth lane. At 3% to 4%, replacing $120,000 of income takes roughly $3.0 million to $4.0 million in capital. Specifically: $120,000 divided by 0.035 is about $3,428,000. At 0.04 it is $3,000,000.

The vehicles here are broad dividend-growth ETFs and Aristocrat-style blue chips. Johnson & Johnson (NYSE:JNJ) just raised its quarterly payout to $1.34, extending 64 consecutive years of increases, and yields around 2.3%. Procter & Gamble (NYSE:PG) has paid dividends since 1890 and yields 2.9%. Coca-Cola (NYSE:KO) yields 2.6% and just lifted its quarterly to $0.53. The Schwab U.S. Dividend Equity ETF (SCHD) pulls the average up, charges 0.06%, and holds $71.6 billion.

The tradeoff: highest capital requirement, lowest current yield, but the income line compounds. JNJ's annual payout has gone from $1.09 in 1999 to $5.20 in 2025. That is the engine that does the heavy lifting over a 20-year retirement.

The Moderate Tier: 5% to 7% Yield

Capital required drops to roughly $1.7 million to $2.4 million. At 6%, $120,000 divided by 0.06 equals $2,000,000. At 7%, about $1,714,000.

The menu here is high-yield equity, REITs, preferred-share funds, and covered-call ETFs. Altria (NYSE:MO) anchors the category at a 6.1% yield with a $1.06 quarterly payout and a forward P/E of 12. Pair that with REIT funds, preferred-share funds, or equity-income covered-call products to fill out the tier.

Story Continues

Are you ahead, or behind on retirement? SmartAsset's free tool can match you with a financial advisor in minutes to help you answer that today. Each advisor has been carefully vetted, and must act in your best interests. Don't waste another minute; learn more here.

You buy more current income for less capital. You give up most of the dividend-growth compounding, and covered-call sleeves cap your equity upside in a strong market.

The Aggressive Tier: 8% to 14% Yield

This is where the capital requirement collapses to $857,000 to $1.5 million. At 10%, $120,000 divided by 0.10 is $1,200,000. At 12%, exactly $1,000,000.

Business development companies, mortgage REITs, leveraged covered-call funds, and high-yield bond funds populate this tier. Ares Capital (ARCC) yields 10.1% on a $0.48 quarterly distribution and trades near book value at $19.59 NAV. The catch: ARCC's NAV slipped from $19.94 last quarter, and the shares are down about 4% year to date. That is the signature of the tier. The income shows up, the principal does not always.

The Compounding Effect Many Investors Underestimate

A conservative $4 million portfolio generating $120,000 in annual income today may not look exciting at first glance. However, if those dividends grow at 6% to 9% per year, the income stream can exceed $250,000 annually within about 12 years, even before accounting for any share-price appreciation. By contrast, an aggressive portfolio designed to maximize current yield may start with less capital and higher payouts, but income growth is often limited. As distributions are reduced and net asset values decline, the long-term income advantage can narrow significantly.

Why Taxes Matter as Much as Yield

Once dividend income reaches $120,000 per year, taxes become a major factor in portfolio construction. Qualified dividends from companies such as Johnson & Johnson, Procter & Gamble, Coca-Cola, and many distributions from SCHD are generally taxed at long-term capital gains rates rather than ordinary income rates. Higher-yield investments, including many business development companies, mortgage REITs, and covered-call funds, often generate distributions taxed as ordinary income. That difference can have a meaningful impact on the amount of income investors actually keep. With the 10-year Treasury yielding around 4.5%, investors should evaluate not only the size of a portfolio's yield, but also how much of that income remains after taxes.

Three Moves Before You Commit

Track your actual after-tax spending for 12 months. A household netting $120,000 often grosses far less than its salary suggests, which can shrink the required capital by hundreds of thousands. Hold ordinary-income payers (BDCs, mREITs, covered-call ETFs) inside an IRA or 401(k). Keep qualified-dividend stocks in the taxable account where the 15% rate applies. Compare a 10-year total return for a 3.5% dividend-growth fund against a 10% high-yield fund using their actual distribution histories. The growth side's compounding usually wins past year seven, and that is the decision you are really making.

If You've Been Thinking About Retirement, Pay Attention (sponsor)

Retirement planning doesn't have to feel overwhelming. The key is finding expert guidance, and SmartAsset's simple quiz makes it easier than ever for you to connect with a vetted financial advisor. Here's how:

Answer a Few Simple Questions. Get Matched with Vetted Advisors Choose Your  Fit

Why wait? Start building the retirement you've always dreamed of. Get started today! (sponsor)

View Comments

Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!

In this battle of ETFs, Schwab U.S. Dividend Equity ETF (NYSEMKT:SCHD) offers a higher distribution yield and a more concentrated portfolio compared to the broader, lower-cost Vanguard High Dividend Yield ETF (NYSEMKT:VYM).

Dividend-focused investors often narrow their search to these two heavyweights. Both funds target established, dividend-paying U.S. companies, but they differ in how they screen for quality, how they weight their positions, and how much they charge for the privilege.

Snapshot (cost & size)

Metric VYM SCHD Issuer Vanguard Schwab Expense ratio 0.04% 0.06% 1-yr return (as of June 8, 2026) 24.3% 26.3% Dividend yield 2.2% 3.2% Beta 0.73 0.67 AUM $94.6 billion $95.3 billion

Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.

With a 0.06% expense ratio, SCHD is competitively priced, though it sits 2 basis points above VYM at 0.04%. For income seekers, the Schwab fund compensates with a 3.2% distribution yield, notably higher than the 2.2% offered by its Vanguard peer.

Performance & risk comparison

Metric VYM SCHD Max drawdown (5 yr) (15.8%) (16.8%) Growth of $1,000 over 5 years (total return) $1,710 $1,503

Schwab U.S. Dividend Equity ETF focuses on quality and sustainability, tracking the Dow Jones U.S. Dividend 100 Index. It holds 103 stocks, making it much more concentrated than its peer. Its sector exposure tilts toward technology at 19%, with consumer defensive and healthcare both at 18%. Top holdings include Qualcomm (NASDAQ:QCOM) at 5.85%, Texas Instruments (NASDAQ:TXN) at 5.55%, and UnitedHealth Group (NYSE:UNH) at 5.40%. Stalwart stocks like Coca-Cola (NYSE:KO), Merck (NYSE:MRK), and Verizon Communications (NYSE:VZ) are also among its top 10 positions, and no single holding exceeds 6% of the portfolio. Launched in 2011, the fund has a trailing-12-month dividend payout of $1.06 per share.

Vanguard High Dividend Yield ETF casts a wider net with more than 600 holdings. It favors financial services at 20%, followed by technology at 18% and healthcare at 12%. Its largest positions include Broadcom (NASDAQ:AVGO) at 8.03%, JPMorgan Chase (NYSE:JPM) at 3.35%, and ExxonMobil (NYSE:XOM) at 2.72%. Household names like Bank of America (NYSE:BAC), Johnson & Johnson (NYSE:JNJ), and Procter & Gamble (NYSE:PG) are also among its top 10. The Vanguard fund was launched in 2006 and has paid $3.51 per share in dividends over the trailing 12 months.

Story Continues

For more guidance on ETF investing, check out the full guide at this link.

What this means for investors

The Vanguard and Schwab ETFs share many similarities, with comparable assets under management, expense ratios, and recent returns. SCHD is considerably more concentrated, but contains many blue chip names. Vanguard's ETF offers far more diversification, boasting over 600 equities. While VYM's payout is greater on a dollar basis, its yield is lower, meaning if $1,000 were invested in each fund, Schwab's ETF would ultimately generate more annual income.

Investors primarily interested in the dividend yield would probably prefer to opt for SCHD. However, VYM's diversification shouldn't be discounted; the ETF's performance is spread out over hundreds of stocks, reducing your overall risk (but also your overall potential return). Given dividend-paying stocks tend to be more stable in general, investors with a long-term time horizon would likely feel comfortable owning shares of either ETF, though SCHD's yield is clearly more attractive.

Should you buy stock in Schwab U.S. Dividend Equity ETF right now?

Before you buy stock in Schwab U.S. Dividend Equity ETF, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Schwab U.S. Dividend Equity ETF wasn't one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $439,038! Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,277,804!

That performance is why people listen. With a track record of beating the S&P 500 by nearly 5x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul.

See the 10 stocks »

*Stock Advisor returns as of June 10, 2026.

JPMorgan Chase is an advertising partner of Motley Fool Money. Bank of America is an advertising partner of Motley Fool Money. Erin Kennedy has positions in Schwab U.S. Equity Dividend ETF. The Motley Fool has positions in and recommends Broadcom, JPMorgan Chase, Merck, Qualcomm, Texas Instruments, and Vanguard High Dividend Yield ETF. The Motley Fool recommends Johnson & Johnson, UnitedHealth Group, and Verizon Communications. The Motley Fool has a disclosure policy.

Schwab vs. Vanguard: Which Dividend ETF Offers a Juicier Yield? was originally published by The Motley Fool

View Comments

Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!

For Immediate Release

Chicago, IL – June 10, 2026 – Today, Zacks Investment Ideas feature highlights Eli Lilly LLY, Home Depot HD, Procter & Gamble PG and Starbucks SBUX.

Deja Vu? AI Overspending Fears Renew

Over the last three trading days, tech stocks, especially semiconductors and AI-adjacent names, have been crushed as investors rotated aggressively out of the sector. The Mag 7, the memory names and the broader semiconductor complex are all down sharply.

But this is not the first time. Since the AI boom kicked off in 2023, we have seen this story play out repeatedly. Each episode arrived with its own distinct headline scare, and each one, at least so far, was eventually bought.

Before getting into what's driving today's move, it's worth walking through the prior scares, because the pattern is instructive.

July–August 2024 — the monetization scare. This was the first real wobble. Google kicked off Big Tech earnings season with capital expenditures climbing sharply, and management struggled to give a clean answer on when that spending would translate into returns. Microsoft, for its part, framed AI monetization as something that would play out "over the next 15 years and beyond," not the near-term payback some investors were hoping for. The Nasdaq 100 fell more than 3% on July 24, its worst session since October 2022, and the anxiety bled into the violent early-August unwind of the yen carry trade. The core worry: the spending was unmistakably real, but the returns were not yet visible.

January 2025 — the DeepSeek shock. A Chinese startup claimed it had trained a model competitive with the leading US systems for under $6 million, using less advanced hardware. The read-through was that if frontier-level AI could be built far more cheaply, the case for hundreds of billions in GPU spending might be overstated. Nvidia lost roughly $593 billion in market value in a single session and the Philadelphia Semiconductor Index fell more than 9%, its steepest drop since the early-2020 COVID crash. Unlike the prior episode, this scare wasn't about slow returns, it was the fear that cheaper training would undercut the entire capex thesis. The selloff reversed quickly once the major hyperscalers reaffirmed their spending plans.

November 2025 — "AI bubble" fears. This one was a slower grind lower rather than a single-day crash, driven by stretched valuations and a growing chorus of skeptics. Michael Burry, of "The Big Short," argued that the hyperscalers were flattering their earnings by understating depreciation, extending the assumed useful life of AI chips and servers that, in his view, become obsolete far faster. The Nasdaq logged its worst week in months as institutional surveys showed a majority of investors believed AI stocks had become a bubble. The accounting angle made this a more sophisticated version of the bear case than earlier rounds.

Story Continues

Late January–February 2026 — the capex-guidance rout. This was the largest aggregate wipeout. A cluster of mega-caps shed well over $1 trillion in combined market value in a single week as fourth-quarter earnings revealed staggering capex plans, as Amazon alone guided to roughly $200 billion in infrastructure spending, a 56% jump and the highest commitment among the hyperscalers. A new fear joined the familiar one: not only was capex outrunning the cash flow funding it, but investors began to worry that AI itself was beginning to cannibalize the established software companies, the very names that had been considered safe AI winners.

An observation of my own: after years of watching markets, you'll notice these narratives often get assigned to the price action after the fact. Nothing in global markets happens in a vacuum, and prescribing a single tidy story to a selloff, while helpful for simplification, can be unhelpful for understanding the broader setup. Look closely and each of the four episodes above was triggered by a different worry, but each time an extended market that snaps its streak reaches for whichever AI-skeptic story best fits the tape that week.

Consider what else was happening underneath each "AI" selloff. The July–August 2024 drawdown is remembered as the "AI fatigue" trade, but the real violence came from the Bank of Japan's surprise rate hike unwinding the yen carry trade and a weak jobs report that tripped a recession indicator. The January 2025 DeepSeek shock hit a tape already on edge over a hawkish Fed, a 10-year yield near 4.7%, and fresh tariff threats. And the November 2025 "bubble" scare, while more genuinely valuation-driven, still rode on an unsettled Fed path and stretched positioning after a long summer melt-up. The AI story was the most quotable explanation each time, but it was hardly the only one.

That observation deserves its own deeper treatment, which we won't attempt here, but it's worth keeping in mind whenever a clean explanation gets attached to a messy move. Ultimately, markets move lower because there are more sellers than buyers, which is often an unsatisfactory explanation.

Other Factors Moving the Stock Market

In the current case, several variables are at play beyond the AI-spending headline.

Equities, tech and AI especially have been on a powerful run since the March lows that followed the onset of the US–Iran conflict. That rally pushed sentiment to heavily bullish extremes, and stretched positioning is precisely what leaves a market vulnerable to a sharp, fast reversal. When nearly everyone is already long and leaning the same way, there are few buyers left to absorb selling once it starts.

At the same time, interest rates have been grinding higher, pressured from two directions. Higher oil prices, a byproduct of the geopolitical backdrop have revived inflation concerns, while consistently robust labor market data has reduced the case for near-term rate cuts. Together, those forces put upward pressure on yields and raise the prospect of a less accommodative Federal Reserve.

As far as I can tell, last Friday's strong employment report was the initial catalyst, by pushing rate expectations higher, while the renewed AI-spending fears added fuel to the fire. Overextended positioning then did the rest, leaving the tape vulnerable to a negative feedback loop of selling, which is what we are seeing today.

The Bear Case for AI Stocks Isn't Unreasonable

While I doubt this marks the end of the AI boom, it would be a mistake to dismiss the bears. They are raising legitimate points.

The sheer scale of the spending. More than $1 trillion has been poured into AI through data-center infrastructure and capital raised for the model labs — OpenAI, Anthropic, and others. For 2026 alone, the major hyperscalers have collectively guided to somewhere in the range of $600–700 billion in capital expenditures.

The opacity around returns. There is real uncertainty about the return on investment in these data centers, and the economics of actually running the models are murkier than they appear. When you pay a monthly subscription to an AI provider, the cost of serving your prompts may well exceed what you're paying, meaning the usage is being subsidized by an unknown amount. Loss-leading is not a new strategy, as several of the Mag 7 built their dominance by absorbing losses to capture markets first. But it has never been attempted at anything close to this scale, and the path to sustainable margins remains undefined.

The circularity. A growing concern is how interlinked the major players have become. Nvidia has invested in "neocloud" providers, companies that rent out GPU computing power, which in turn use that capital to buy more Nvidia chips. Nvidia has also committed to invest heavily in OpenAI, which has pledged to spend enormous sums on the very compute that flows back through the ecosystem. Supporters frame this as a "virtuous circle" that locks in scarce supply and critics see it as a web of interdependent commitments where a stumble at one node could cascade through the whole structure.

The coming mega-IPOs. A wave of richly valued, deeply unprofitable companies, the likes of SpaceX, Anthropic, and OpenAI are coming to public markets. By entering the major indexes while still burning cash on opaque business models, they could introduce fresh vulnerability for passive investors who hold them by default. Viewed cynically, the whole sequence can look like an opportunity for venture capital and other early backers to cash out at the top before any unraveling.

These are all reasonable concerns, but it's worth being precise about what they rest on: the assumption that data-center investment is structurally unprofitable. That is largely true today. It is far less clear that it will remain true. The margins on AI infrastructure are still being discovered, and history with prior technology buildouts suggests that early-stage unprofitability is not the same thing as permanent unprofitability. The honest position is that the verdict is genuinely unknown, which is exactly why the tape whipsaws on every new data point.

Which Stocks Are Capturing the Flows

As money has come out of tech, it has been finding a home in the more defensive and beaten-down corners of the market. Today we're seeing real estate, consumer staples, healthcare, and some left-for-dead retail names catch a bid. Among the more interesting movers are Eli Lilly, Home Depot, Procter & Gamble andStarbucks, among many other established, cash-generative businesses that had been largely ignored while capital chased AI.

I'm not prepared to call this the start of a durable resurgence in these names, but the logic tracks. Most data points to a broadly healthy US economy even as investor attention has been monopolized by AI. If the economy continues to hold up, these unloved areas \could absorb a meaningful share of the flows rotating out of crowded tech.

This may raise more questions than it answers, and that's fine. Identifying the current environment is a more tractable task than predicting the future, and good portfolio management sometimes simply requires being appropriately defensive for the conditions in front of you today.

Why Haven't You Looked at Zacks' Top Stocks?

Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.

Today you can access their live picks without cost or obligation.

See Stocks Free >>

Media Contact

Zacks Investment Research

800-767-3771 ext. 9339

support@zacks.com

https://www.zacks.com

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Procter & Gamble Company (The) (PG) : Free Stock Analysis Report

Eli Lilly and Company (LLY) : Free Stock Analysis Report

Starbucks Corporation (SBUX) : Free Stock Analysis Report

The Home Depot, Inc. (HD) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

View Comments

Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!

The Procter & Gamble Company (NYSE:PG) was among the stocks Jim Cramer discussed on Mad Money, along with the recent sell-off in the market. Cramer mentioned the stock during the episode and remarked:

Today's the day that Procter & Gamble sure plays well in the Trust. Sure, it's not like doing, not doing as well as we'd like, but that means nothing new in this tape… See, the lesson's clear, people. The P&Gs and the J&Js in your portfolio allow you to safely own the techs. They're kind of like permits. But if you don't take something off the table of the techs when you're up big, I think you're going to live to regret it.

Photo by Adam Nowakowski on Unsplash

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. During the May 11 episode, Cramer discussed the company, as he commented:

Back in 1999, we had some stocks of companies that would report upside surprises and quickly give up much of their post-earnings gains. Oh, there's something we're starting to see. Right now, I'm looking at PepsiCo and Procter & Gamble. They just gave up the ghost in a similar fashion in 1999. We own Procter for the Charitable Trust, and I'm so tempted to buy more, but there's really no reason to believe the stock can start rebounding anytime soon, given the current environment. I'm not oblivious.

While we acknowledge the potential of PG as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years

Disclosure: None. Follow Insider Monkey on Google News.

View Comments