Sysco, Procter & Gamble - Still Looking Good

With the run up the market has had since the March lows, it has become difficult to find stocks with attractive valuations. Many of the more cyclical stocks, as well as financials, have really run up and I'm not sure that future earnings will justify the current prices in some cases.

Luckily there are still a few good buys out there. For dividend growth investors, it's a nice bonus when a company is still raising its dividend through thick and thin. These two firms have solid balance sheets and fit that bill. They have stable product offerings and they've navigated through tough times before. Their dividends are growing and very secure. I've added to my positions in both companies over the past 6 months, and I am considering doing so again at these valuations.

Food distributor SYSCO (SYY) is yielding 4%, and trading at a P/E of 13.6x.

Consumer products giant, Procter & Gamble (PG) is yielding 3.4%, and trading at a P/E of 14.7x.

There are headwinds afoot for both of these firms, but I believe that as long term investments they may be ripe for the picking right now. I may put my money where my mouth is in the near future. For my further thoughts see the posts below.

Added More P&G

Took a Helping of Sysco

Comments

[granger:]

agreed, I am intently watching SYY.

Aug 18 12:42 PM

[KyBec:]

I'd buy in SYY at $22

On Aug 18 12:42 PM granger wrote:

> agreed, I am intently watching SYY.

Aug 18 06:25 PM

[KyBec:]

I'd buy into SYY at $22...

Aug 18 06:25 PM

[Dividend Gr...:]

SYY and PG are two solid companies for the long-term dividend investor, trading at decent valuations. If only most of US companies treated shareholders like them.

Aug 19 10:18 AM

[E Nuff Sed:]

Agree. Both companies on account of their dominance have "big moats", pay healthy div and have solid financials apart from being undervalued.
P&G also has huge emerging market presence which is really being under-appreciated by the market.

Aug 19 02:42 PM

[podtai:]

Sysco's financials disclose a potential tax liability for tax and interest of roughly $1 billion. Only a fool would buy at this price.

Aug 20 09:43 PM