Is The Procter & Gamble Company (PG) a Buy?

The Procter & Gamble Company (NYSE:PG)’s competitors aren’t far behind in that regard. The Clorox Company (NYSE:CLX) recently gave its investors a healthy 11% pay raise. Clorox has an impressive dividend track record of its own: total annual dividends paid to The Clorox Company (NYSE:CLX) shareholders have increased each year since 1977.

Colgate-Palmolive Company (NYSE:CL) recently bumped up its shareholder payout by 10%. Colgate-Palmolive Company (NYSE:CL) has paid uninterrupted dividends on its common stock since 1895 and increased payments to common shareholders every year for 51 years.

Is the stock a buy?

P&G is a company I admire for many reasons, including its amazing history and wonderfully stable business. The company has a stable of well-known brands that can be found in nearly every home in America. Moreover, the company’s international expansion is a likely source of strong growth going forward.

That being said, as much as I would love to own a tiny fraction of what is a fantastic business, I can’t bring myself to buy the stock at its current levels. The Procter & Gamble Company (NYSE:PG) trades for a trailing price-to-earnings multiple of 17, about on par with the broader market, and the stock currently yields 3%.

The Procter & Gamble Company (NYSE:PG) investors will continue to receive decent earnings growth and dividend growth in the high single digits to low double digits for a long time. The company and its investors should do reasonably well for many years, but at the same time, it’s hard to make the case that the company is a screaming buy. I consider The Procter & Gamble Company (NYSE:PG), as well as most of the consumer staples giants, to be fairly valued at their current levels, and I’m waiting for a significant pullback before jumping in.

Robert Ciura has no position in any stocks mentioned. The Motley Fool recommends The Procter & Gamble Company (NYSE:PG).

The article Is Procter and Gamble a Buy? originally appeared on Fool.com.

Robert is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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