P&G Edges Out Colgate as Top Dividend Paying Stock

Two of the market's most reliable dividend payers, Procter & Gamble (NYSE:PG) and Colgate-Palmolive (NYSE:CL), recently paid dividends to shareholders. While both are Dividend Kings with long histories of annual increases, one stands out from the other.

P&G has raised its dividend for 70 consecutive years, while Colgate has done so for 63 years. Both companies have a strong track record of paying dividends, but P&G's forward annualized dividend now stands at $4.354 per share, translating to a yield of 2.93%. In contrast, Colgate's forward annualized payout is $2.12 per share, yielding 2.33%.

P&G also has a wider coverage cushion, with earnings of $6.89 in fiscal 2026 core EPS against a forward dividend of $4.354. This means that P&G can afford to pay its dividend without straining its finances. In contrast, Colgate's EPS profile is tighter, with trailing diluted EPS at $2.54 against a $2.12 forward dividend.

P&G's capital return firepower is also stronger, with over $15 billion returned to shareholders in fiscal 2026 and guidance for another $15 billion in fiscal 2027. Colgate has smaller absolute numbers, but its market cap is lower at around $71.5 billion compared to P&G's $339.6 billion.