Coca-Cola, Procter & Gamble and Colgate-Palmolive are hitting 52-week highs as investors seek stability after midterm results left the government divided. These consumer staples are seen as relatively insulated from political outcomes. Coca-Cola's revenue grew 7% and comparable EPS rose 11%, but at about $96 per share it trades near 29x earnings versus 23.5x for the S&P 500. P&G's core EPS rose just 1% and its shares, above $167, trade near 24x earnings, while Colgate's base EPS rose 7% at a price of $99, or over 25x earnings. The author concludes that none offers a compelling expected return at these prices without high-single-digit EPS growth and sustained premium valuations.
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Original headline: Here’s Why Dividend Kings Coca-Cola, Procter & Gamble, and Colgate-Palmolive Are Hitting 52-Week Highs Following Midterm Election Results
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