Another one of our Club names, a Dow stock, was trading lower again Thursday on the inflation worries prompted by this week’s Target and Walmart (WMT) debacles. We think it’s a buying opportunity on weakness. The name is Procter & Gamble , the company behind such brands including Crest toothpaste, Tide laundry detergent and Gillette shaving products. Shares of the consumer products giant fell another 2% on Thursday, one day after dropping more than 6% as the Dow Jones Industrial Average had its worst day since 2020. During Wednesday’s and Thursday’s “Morning Meeting,” Jim Cramer said he would want to buy more P & G if the Club were not restricted from doing so (details on our rules at the bottom of this story). While we can’t buy more shares of P & G right now for our portfolio, we will always tell members what we would do, so you can act and get the best price. We view P & G as a stock that can weather these types of economic storms, even recessions, because they sell consumer products that people have to use on a daily basis and need to buy regardless of how the economy is doing. It’s been about the six weeks since we started high-grading the portfolio into companies better suited to weather the current investing environment of roaring inflation and slower growth. Last week, as part of that process , we sold 75 shares of Boeing , which we eventually exited entirely , and used half the cash to buy 30 more shares of P & G. As we mentioned at the time, Procter & Gamble is the kind of company that can raise prices to offset its own inflationary business costs. Last quarter, the company reported a 10% increase in organic sales, with half of that increase related to price. Remember, price increases on high-quality products that P & G are known tend to be sticky. P & G checks all the boxes of our investing mantra for this year of buying shares in companies that make and do stuff for a profit, trade at reasonable valuations and return cash to shareholders. Procter & Gamble is a prime example of a make-stuff-for-a-profit company. In its fiscal third-quarter results, which were released on April 20, adjusted earnings-per-share of $1.33 beat expectations. The company trades at 23 times forward 12-month earnings. P & G repurchases stock quarter after quarter: $1.2 billion in fiscal Q3. It also offers a solid dividend yield of 2.59% at Thursday’s stock price. (Jim Cramer’s Charitable Trust is long PG and WMT. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
