Course 406: Slow-Growth Stocks
How Has the Stock Performed?
In this course
1 Introduction
2 How Fast Is the Company Growing?
3 How Consistently Is the Company Growing?
4 Does the Company Generate a Dependable Stream of Free Cash Flow?
5 What's the Company Doing with Its Money?
6 What's the Return on Capital?
7 How Has the Stock Performed?
8 Is the Stock Priced Like a Slow Grower?
9 Conclusion: What Do I Get in Return?

Procter & Gamble's steady performance and high profitability translated into impressive returns during the 1990s. P&G's stock returned more than 30% on an annualized basis from 1994 through 1999, beating the S&P 500 in three of those years. Moreover, these returns were steady over time, without the wild swings that characterize many stocks in hot sectors such as technology. However, early 2000 was a different story. A failed attempt to take over two major drug companies, followed by a warning of lower profits, sliced 40% off P&G's stock price during the first three months of the year.

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