By Zach Scheidt
This post Edge Alert: This “Anti-Dollar” Play Is A Screaming Buy! appeared first on Daily Reckoning.
There’s a high-stakes battle going on right now…
One that pits an activist billionaire against the CEO of a $237 billion dollar company. A battle featured in financial headlines and one that has commanded prime time placement on TV stations like CNBC, Bloomberg TV and Fox Business News.
This power struggle may go down in history as one of the biggest corporate conflicts in history!
And yet for investors, the outcome of this conflict is completely irrelevant.
Today, I want to show you why this blue-chip cash cow deserves a spot in your portfolio, regardless of who wins the battle, because this company is poised to move significantly higher, no matter who is at the helm.
Let me explain…
A 61-Year Investment Staple
Procter & Gamble (NYSE:PG) is arguably the most dominant consumer staples company in the world. With brands like Cascade detergent, Charmin bath tissue, Crest toothpaste, and Comet cleaning powder (that’s just the brands that start with “C” !!), the company has earned the business of millions and millions of consumers around the world.
As a consumer staples company, P&G operates a very reliable and profitable business.
After all, you’re always going to replace your toothpaste, toilet paper, and shampoo… regardless of the economic climate or who is in the white house.
So it’s no wonder that P&G has generated lucrative profits throughout the years, regardless of whether the global economy is in growth mode or recession. These profits have given P&G the ability to raise its dividend year after year…
…for sixty one consecutive years!!1
That’s an impressive feat that has captured the attention of investors around the world. Today, Procter & Gamble is regarded as the gold standard, not only when it comes to consumer staple products, but also in terms of reliable cash-generating investments.
Of course, I’ve included Procter & Gamble in my long-term portfolio of dividend stocks for my Lifetime Income Report newsletter. In my opinion, no dividend investment portfolio is complete without some exposure to this iconic cash generator.
But while P&G’s profits and dividends are some of the most reliable in the world, the company is not without a bit of drama…
The Dramatic Struggle to Control P&G
Recently, P&G has made headlines thanks to a power struggle in the company’s boardroom.
To make a long story short, billionaire activist investor Nelson Peltz is trying to shake things up at P&G.
As the co-manager of Trian Fund Management L.P., Peltz has invested $3.5 billion of his fund’s assets into P&G. Through this large investment, Peltz is seeking a board seat which will give him more influence over the company.
In addition to this seat, Peltz has been very public with his criticism of P&G’s management, going as far as to write a white paper covering many of the changes he would advocate if he were elected to P&G’s board.
Unfortunately David Taylor — the current CEO of Procter & Gamble — has resisted Peltz. I think the company would be better served …read more
Source:: Daily Reckoning feed
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