The Procter & Gamble Company (PG) provides branded consumer packaged goods to consumers in North and Latin America, Europe, the Asia Pacific, Greater China, India, the Middle East, and Africa. It operates in five segments: Beauty; Grooming; Health Care; Fabric & Home Care; and Baby, Feminine & Family Care.
The company increased its quarterly dividend by 5% to $0.9133/share. This dividend increase will mark the 66th consecutive year that this dividend king has increased its dividend. The new quarterly dividend of $0.9133/share is almost exactly 5% higher from the prior dividend of $0.8698/share. Fractions make it possible to get even dividend raises on a percentage basis.
This dividend increase will mark the 66th consecutive year that P&G has increased its dividend and the 132nd consecutive year that P&G has paid a dividend since its incorporation in 1890. It reinforces our commitment to return cash to shareholders, many of whom rely on the steady, reliable income earned with their investment in P&G.
There are only 38 dividend kings in the US. Those are companies that have managed to increase their annual dividends every year for at least 50 years in a row.
Source: Press Release
During the past decade, the company has managed to increase dividends at an annualized rate of 5.20%.
The company is expected to generate $5.88/share in earnings in 2022. That being said, the core business is very stable, which means that long-term earnings power should not be affected. Based on forward earnings, it appears that the forward dividend payout ratio is at 62%, which means that the dividend is sustainable.
