Can you buy Gillette stock? Ranked #37 on Forbes list of The Worlds Most Valuable Brands, the consumer products giant Gillette is worth an estimated $19.2 billion. I'm sure it helped that consumers stocked up on staples like toilet paper ahead of the COVID outbreak.
With their products used by an estimated 75 million men around the world, it begs the question, is Gillette really the best a man can get? Well, with sales numbers like that, perhaps yes.
So if you're looking to get a smooth entry on Gillette stock to capitalize on these numbers, you might want to keep reading.
How To Buy Gillette Stock
- Unfortunately, you can't. Back in 2005, the Gillette product line of razors and personal care products became part of Procter & Gamble when they purchased the company. On a side note, this acquisition made high-profile investors like Warren Buffett billions of dollars; about $645 million -- in one day.
Although you can't buy Gillette stock, you can purchase shares indirectly through Proctor & Gamble.
But, did you know that you can buy Gillette stock in India? If you're trading intraday, you can get in on good moves.
If you can trade in India, you can buy Gillette stock. Founded on September 2, 1984, and headquartered in Mumbai, India,
Gillette India Ltd. engages in the manufacturing and selling of branded packaged consumer goods in the grooming and oral care businesses.
Granted, I don't know all the in's and outs of the Indian stock market, but if you're Indian, it's worth checking out.
1. A Brief History
In 1926, Gillette Stock was on top of the world, no lie. Other than railroads, utilities and General Electric, it wouldn't be a far stretch to say they represented the "bluest" of all blue-chip stocks available.
At that time, Gillette controlled 82% of the safety razor and blade market in the United States! If you knew how to trade stocks and they were being traded, it was probably a great investment.
2. Interesting Facts
- In 1837, William Procter and James Gamble founded Proctor & Gamble.
- Gillette pays $7 million a year for the naming rights to Gillette Stadium, home of the New England Patriots.
- In 7 of the past ten years, P&G's spent more on ads than any other company on earth. In fact, they spend 3X the GDP of Belize every year to keep its brands #1.
3. Why You Might Want to Consider Buying Shares in Proctor and Gamble (PG)
Procter & Gamble is one of the top ten businesses in the world in terms of earnings quality, and Gillette is one reason why. Gillette's razors are one of the most profitable companies for P&G.
Like I mentioned above, the company's razors are used by 750 million men in more than 200 million countries. There's no arguing that tech stocks like Apple, Google and Microsoft are the way to go for beginner investors.
However, stock from companies like Proctor and Gamble who produce high-quality consumer products - think Tide detergent, Gillette razors, should be on your buy list, as well.
As the maker of health, hygiene and cleaning brands like Vicks, Crest, Charmin, Pampers, Always, Gillette, Mr. Clean, and Tide, the parent company of Gillette, Proctor and Gamble (PG) is one I like to consider as a strong buy.
Why? Firstly, PG stock is what you call a "defensive stock." What's that? That's a stock considered to be a safe haven during an economic downturn.
For the most part, this means share prices remain relatively stable to other stocks, which could trade erratically as uncertainty muddles the market.
You can trade $PG on Tradestation and get in that Gillette stock action. Sort of.
4. Procter and Gamble Dividends
But that's not all! We have much other reason's why you should consider buying shares in Proctor and Gamble. For starters, their dividends.
Unlike many companies who are slashing or suspending their dividends, P&G's raised their dividend an impressive 63 years in a row! Yes, 63 years.
Furthermore, P&G recently announced it's raising its quarterly dividend by 6%. Numbers like this are exactly what long-term investors look for.
Secondly, and perhaps the most obvious, their brands are in practically every household in America. I don't think it would be a far stretch to say that of all the goods in your home, Procter & Gamble (PG) owns most of them.
Offering stability, strength and yield, consider defensive PG stock one of the best stocks for those just beginning to invest.
Granted, shares remain pricey since the March 2020 meltdown but that's no reason you can't buy options on them to swing trade.
If you're looking to start investing in stocks, today's market is a great entry point! If you're a beginner trader, we have plenty of courses to get you started.
Competition Is Slicing Gillette Stock
- Unfortunately, the consumer products giant has also faced increased competition from disruptors like Dollar Shave Club and Harry's. So much, in fact, the market share over the past decade is down from 70% in 2010 to below 50% in 2017 (Euromonitor).
Gillette's approach has been to charge ten times the amount of its discount cost competitors. However, I suspect it will be difficult for Gillette to ever capture 70% of the shaving market again without dropping their prices.
All of this, however, waits to be seen. A bull vs bear market will affect the way a stock trades.
1. Let's Talk Numbers
Are you still on the fence on buying Gillette stock? Well, here's how Procter & Gamble did for the quarter ended March 31 vs. analysts expectations:
- Earnings per share: $1.17 vs. $1.13
- Revenue: $17.21 billion vs. $17.46 billion
In the fiscal third quarter, P&G reported a net income of $2.92 billion, or $1.12 per share. These earnings are up from $2.75 million, or $1.04 per share, from last year. Excluding items, earnings are $1.17 a share, with net sales rising 5% to $17.21 billion.
My Thoughts On Gillette Stock
We love to groom. And even though you can't buy Gillette stock, you can purchase shares indirectly through P&G.
Grooming and personal hygiene continue to be a very attractive business, and I don't think the need is going anywhere any time soon.
People will always need toilet paper, razors and a plethora of goods P&G offers. And by the time a man or woman wakes up, they'll need to use Gillette's product.
Is Gillette the best a man can get? You'll have to try them for yourself, but what I do know is that Bullish Bears is the best any man or woman can get.
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