5 Best Household and Personal Care Stocks To Buy

1. The Procter & Gamble Company (NYSE:PG)

Number of Hedge Fund Holders: 74

The Procter & Gamble Company (NYSE:PG) provides branded consumer packaged goods worldwide. It operates through five segments – Beauty, Grooming, Health Care, Fabric & Home Care, and Baby, Feminine & Family Care. It is one of the best household stocks to watch. On April 11, The Procter & Gamble Company (NYSE:PG) declared a $0.9407 per share quarterly dividend, a 3% increase from its prior dividend of $0.9133. The dividend is distributable on May 15, to shareholders of record on April 21. 

On April 26, Barclays analyst, Lauren Lieberman, increased The Procter & Gamble Company (NYSE:PG)’s price target to $167 from $160 while maintaining an Overweight rating on the shares. In a research note to investors, the analyst stated that the company’s Q3 fiscal results exceeded expectations, including surpassing organic sales forecasts and witnessing a significant upturn in gross margins.

According to Insider Monkey’s fourth quarter database, 74 hedge funds were bullish on The Procter & Gamble Company (NYSE:PG), and Ray Dalio’s Bridgewater Associates held the biggest position in the company, comprising nearly 5 million shares worth $757 million. 

Rowan Street Capital made the following comment about The Procter & Gamble Company (NYSE:PG) in its Q4 2022 investor letter:

“Let’s look at The Procter & Gamble Company (NYSE:PG). Dividend yield is 2.4%. Earnings are forecasted to grow at 5.9%, and its current earnings multiple is at 25x. Now, lets say over the next 3-5 years the market loses interest in the “safe”, mature companies that grow at anemic rates and gets an appetite for growth again. It’s very unlikely that Mr. Market will be paying 25x for 5.9% earnings growth. Lets assume that multiple declines to the market average of 18x — that would be ~6.9% drag per year on the total expected return over next 3-5 years. If we get 2.4% (dividend) + 5.9% (earnings growth) – 6.9% (decrease in earnings multiple) = 1.4% (annual return we can expect on average from this stock).”

Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily enewsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below. You can also check out Goldman Sachs’ Top 15 Stock Picks for 2023 and Top 15 Live Entertainment Companies in the World.