Procter & Gamble (NYSE:PG) is one of the top consumer goods companies in the world, with well-known brands in its portfolio, including Olay, Downy, Bounty, and many others. It’s one of the safest options for long-term investors, and one of the reasons is due to the company’s attractive dividend.
The company offers a high yield and it has been increasing its dividend payments for years. Last week, Procter & Gamble announced it was raising its dividend once again. The new quarterly payment of $1.0065 is a 7% increase from the $0.9407 that the company was paying previously. The new dividend puts the stock’s yield at 2.6%, which is higher than the S&P 500 average of 1.4%.
But what’s particularly noteworthy about the stock is that Procter & Gamble is a Dividend King, which has increased its dividend for more than 50 consecutive years. With the latest increase, Procter & Gamble’s dividend streak now sits at 68 consecutive years. Given the company’s strong brands and industry position, it’s likely to remain in good shape for the foreseeable future.
Last year, Procter & Gamble reported a profit of $14.8 billion on revenue of $83.9 billion. The stock has a payout ratio of 63%, which is low enough to leave room for even more rate increases in the future.
The stock has generated 10-year returns of 93%, and when including its dividend, its total returns come in at around 160%. At 22 times its estimated future profits, the stock isn’t terribly cheap but it can still make for an excellent long-term buy for its dividend and long-term stability.
