Looks like Bill Ackman has been following our blog and has seen the light with P & G. The stock is up 6% since we first posted about it (many thanks to Mr. Ackman; up 4.3% so far today) and is poised to continue its rise if Mr. Ackman is willing to push management around a bit. With the dividend yield and the run towards safe income stocks, PG still looks like a screaming buy.
Based on our DCF assumptions of -1% revenue growth for the next seven years P&G is still worth $75 per share. The market is presenting some good buys. Take advantage of P&G’s rich 3.6% dividend yield by selling July 57.5 puts, buying some stock, write covered calls and juice this steady A rated dividend payer to a 20% per year money maker.
