Procter and Gamble and Duracell

[Harmony Management]

Good evening everyone, back after a few months of absence, I appreciate like you the valuation of my portfolio of stocks with increasing dividends although still nostalgic for the opportunities that presented themselves during the period 2008/2012 which I was able to take advantage of. As a shareholder of PG, can someone explain to me what impact on the PG share price the buyout in 2015 of Duracell by Berkshire Hathaway should have?

[Jerome]

Yes, nothing to do with 2008-2012 indeed.
This is also the case for PG… even if it remains a very good company!

Apparently, thanks to this buyout (in fact an exchange of shares), the capital will be reduced by 1.2%
moreover, Duracell's income represents "only" 3% of PG's overall figure
so I think the impact will be relatively small

a future dividend growth of more than 5% per year is expected for the next few years
with that of the expected EPS, that should make 8 to 12% in total

In short, it remains a good value, with a volatility of only 15%

[Author]

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