P&G Edges Ahead of Colgate as Dividend King
Procter & Gamble (NYSE:PG) and Colgate-Palmolive (NYSE:CL) are two Dividend Kings that have recently paid dividends to their shareholders. While both companies have a long history of dividend payments, one stands out in terms of yield, coverage, and valuation.
P&G has raised its dividend for 70 consecutive years and currently offers a forward annualized payout of $4.354 per share, yielding 2.93%. The company's CFO, Andre Schulten, recently highlighted the company's ability to pay dividends with room to grow.
In contrast, Colgate-Palmolive raised its quarterly dividend from $0.52 to $0.53 in April 2026, a roughly 2% increase. Its forward annualized payout is $2.12 per share, yielding 2.33%. However, Colgate's EPS profile is tighter than P&G's, and the company trades at a trailing P/E of 35 compared to P&G's 22.
P&G has also demonstrated its commitment to returning cash to shareholders, with plans to pay over $10 billion in dividends and repurchase approximately $5 billion in common stock in fiscal 2027. Colgate, on the other hand, returned $1.4 billion to shareholders through the first half of 2026.
The price action has been more favorable for Colgate shares, which are up 15.51% year-to-date and 9.28% over the past year. However, this premium valuation reflects momentum that can cut both ways when a dividend costs 35 times earnings to own.