Talking Numbers

Why this Dow component is poised for more gains

Why this Dow component is poised for more gains

Another down day for the Dow, as the index dropped 166 points and investors continue to hit sell.

But despite the selloff in the broader market, one Dow component did see some nice gains: Procter & Gamble.

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Shares of the world's largest consumer products maker bounced around 1 percent Monday after announcing it would increase its quarterly dividend by 7 percent, to $64.36 per share.

This marks the 58th consecutive year that the maker of Tide, Duracell, Crest and Charmin increased its payout, something the company has been doing since incorporating in 1890.

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However, shares of P&G are still down slightly on the year, underperforming the broader market and rivals Johnson & Johnson and Kimberly-Clark.

So, is Monday's rally a one-off or should Procter & Gamble be a staple in your portfolio?

Pat Dorsey, chief investment strategist at Sanibel Captiva Trust, doesn't see much growth potential for the company.

"P&G is in some ways a victim of its own success," Dorsey said. "They are only really going to grow at the market level, which is only 3 to 4 percent a year. So, unless A.G. Lafley's $10 billion dollar cost-cutting plan bears significant fruit, I don't think shares are very attractive right here."

But according to Steven Pytlar of Prime Executions, the charts paint a different picture for P&G.

"The charts look pretty good," said Pytlar, who points out $76 per share as a critical support level. "We like that P&G has been very steady while the broader market has been very weak over the past few days … it's responding to good news today. There is an opportunity for the stock to move higher in the near term."

So, who do you side with? Check out the video to see the full discussion that aired Monday on CNBC's "Street Signs."

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