Share Purchase: PG

I just purchased some shares of Procter & Gamble (NYSE: PG) in my RRSP, at $52.50 per share. The company currently pays out dividends of $1.76 per year, for a yield of 3.35% on my purchase price.

Procter & Gamble has products in every house -- it certainly is quite present in ours! The company owns some of the best-known brands in North America, such as Tide, Gillette, Olay, Crest, Oral-B, Duracell, Always and Pampers.

I have been keeping an eye on the company for some time now, and it seemed like a good time to initiate a position. The stock currently trades at a P/E ratio of 14 (it is usually around 20) and the company has recently announced a 10% increase to the quarterly dividend (from $0.40 to $0.44). Over the last 10 years, the dividend growth has averaged 11% per year, so I think we can expect more increases in the future.

This is a company that I plan on keeping for a very long time, adding more money as time goes by.