This Blue Chip Has Raised Payouts Every Year Since Eisenhower Was President

NYSE: PG | Procter & Gamble Co. News, Ratings, and Charts

PG – Blue-chip dividend aristocrat Procter & Gamble Company (PG) has increased dividend payouts since Eisenhower was President, marking 65 straight years of dividend growth. Let’s discuss its prospects in detail.

Blue-chip dividend aristocrat 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. 

On June 8, 2022, industry giants PG and Microsoft Corp. (MSFT) announced their new multi-year collaboration. The companies expect this partnership to be revolutionary in the emerging market, like automated manufacturing, which aims to foster productivity.

In addition, PG is also taking steps for holistic business development. On June 9, 2022, PG announced a significant expansion of its environmental sustainability efforts to preserve water resources and make water available to all and sundry.

Colin Strong, Corporate Water Stewardship Lead, World Resources Institute Aqueduct Program, said, “P&G’s water target adds a first-of-its-kind ambition to address water consumption and offers a roadmap for others to adopt targets in the face of our shared water problems.”

PG has raised payouts every year since Dwight D. Eisenhower was president. Its annual dividend of $3.65 yields 2.68% on prevailing prices. The company’s dividend payouts have increased at a CAGR of 6.7% over the past three years and a CAGR of 5.5% over the past five years. Its four-year average yield is 2.56%.

Over the past year, PG has gained 2.5% to close the last trading session at $136.37. However, the stock has lost 3.8% over the past month. In addition, Wall Street analysts expect the stock to hit $167.29 in the near term, indicating a potential upside of 22.7%.

Here is what could shape PG’s performance in the near term:

Strong Financials

For the third quarter ended March 31, 2022, PG’s net sales increased 7% year-over-year to $19.38 billion. The company’s net earnings came in at $3.35 billion, up 2.6% year-over-year, while its EPS came in at $1.33, up 5.6% year-over-year. Also, its operating income soared 6.3% year-over-year to $4.02 billion.

Solid Profit Margins

PG’s trailing-twelve-month gross profit margin of 48.49% is 45.2% higher than the industry average of 33.39%. Its trailing-twelve-month EBIT margin and EBITDA margin of 23.45% and 26.96% are also higher than the industry averages of 8.52% and 12.14%, respectively.

Furthermore, PG’s trailing-twelve-month net income margin of 18.33% is 268.1% higher than the industry average of 4.98%.

Favorable Analyst Expectations

PG’s revenue is expected to increase 5.3% year-over-year in the current year and 3.9% next year. Its EPS is estimated to increase 3.2% year-over-year in the current year and 6.3% next year. Moreover, its EPS is expected to grow 5.3% per annum for the next five years. It surpassed EPS estimates in each of the trailing four quarters.

Among the fourteen Wall Street analysts that rated PG, nine rated it Buy, while five rated it Hold.

POWR Ratings Reflect Promising Outlook

PG has an overall rating of B, which equates to Buy in our proprietary POWR Ratings system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.

It has a B grade for Growth and Quality, consistent with its strong financials in its last reported quarter and higher-than-industry profit margins, respectively.

The stock also has a B grade for Stability, in sync with its beta of 0.39.

In the 61-stock Consumer Goods industry, PG is ranked #6. The industry is rated C.

Click here for the additional POWR Ratings for PG (Value, Momentum, and Sentiment).

View all the top stocks in the Consumer Goods industry here.

Bottom Line

PG has raised its dividend payouts for 65 straight years. Moreover, PG’s revenue has grown at a CAGR of 5.9% over the past three years, while its EPS has increased at a CAGR of 10.8%. Also, given its high profitability, I think PG is an ideal investment to hedge against the ongoing market fluctuations.

How Does The Procter & Gamble Company (PG) Stack Up Against its Peers?

While PG has an overall POWR Rating of B, one might consider looking at its industry peer, Mannatech, Incorporated (MTEX), which has an overall A (Strong Buy) rating, and Levi Strauss & Co. (LEVI), which has an overall B (Buy) rating.


PG shares were trading at $138.92 per share on Wednesday afternoon, up $2.55 (+1.87%). Year-to-date, PG has declined -14.14%, versus a -20.71% rise in the benchmark S&P 500 index during the same period.


About the Author: Riddhima Chakraborty


Riddhima is a financial journalist with a passion for analyzing financial instruments. With a master's degree in economics, she helps investors make informed investment decisions through her insightful commentaries. More...


More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
PGGet RatingGet RatingGet Rating
MTEXGet RatingGet RatingGet Rating
LEVIGet RatingGet RatingGet Rating

Most Popular Stories on StockNews.com


:  |  News, Ratings, and Charts

Investor Alert: Prepare to Hit New Lows in July

For as brutal as the market has been so far in 2022...it is likely about to get much worse. Why? Because Q2 earnings season is about to roll out and early indications point to a worsening of results that will likely heighten the stock market (SPY) sell off. This is not a problem for those who are properly trading this bear market. If you are unsure what to do, then read on for this vital commentary providing a timely market outlook and bear market trading plan.

:  |  News, Ratings, and Charts

3 Large-Cap REIT Stocks to Add to Your Portfolio

Since growing concerns over a potential recession due to the Fed’s aggressive interest rate hikes could keep the overall stock market highly volatile in the near term, REITs Crown Castle (CCI), Equinix (EQIX), and Weyerhaeuser (WY) could be good additions to your portfolio for generating a steady income stream. Continue reading...

:  |  News, Ratings, and Charts

Stocks to Fall MUCH FURTHER this Bear Market Cycle

Spoiler alert...the bear market is not over. Unfortunately history shows that the S&P 500 (SPY) has much further to fall to squeeze out excess valuation. That is just a natural part of the bear market process that is properly explained in this timely market commentary. More importantly, this commentary provides a strategy on how to profit in the days and weeks ahead as the market finds its way to bottom. Read on below for more...

:  |  News, Ratings, and Charts

2 Buy-Rated Stocks to Pick Up on Dips

The stock market started the second half of the year with gains. Moreover, the U.S. economy might succeed in dodging a recession, while the Fed is expected to reduce rates later this year. Given this backdrop, we think the dip in Buy-rated stocks Coca-Cola (KO) and Procter & Gamble (PG) might be the right opportunity to scoop them up. Read on…

:  |  News, Ratings, and Charts

Stocks to Fall MUCH FURTHER this Bear Market Cycle

Spoiler alert...the bear market is not over. Unfortunately history shows that the S&P 500 (SPY) has much further to fall to squeeze out excess valuation. That is just a natural part of the bear market process that is properly explained in this timely market commentary. More importantly, this commentary provides a strategy on how to profit in the days and weeks ahead as the market finds its way to bottom. Read on below for more...

Read More Stories

More Procter & Gamble Co. (PG) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All PG News