P&G Outshines Colgate on Dividend Metrics

Procter & Gamble (NYSE:PG) outperformed Colgate-Palmolive (NYSE:CL) in several key areas, making it a more attractive dividend investment. PG paid $1.0885 per share on August 17, 2026, while CL paid $0.53 per share on August 14, 2026.

PG has raised its dividend for 70 consecutive years and paid dividends every year since 1890. Colgate is no slouch, with 63 consecutive years of annual increases. However, PG's forward annualized dividend stands at $4.354 per share, translating to a yield of 2.93%. CL's forward annualized payout is $2.12 per share, yielding 2.33%.

PG also edges ahead on raw yield and raise cadence. The company raised its quarterly payout from $1.0568 to $1.0885 earlier this year, a 3% bump that CFO Andre Schulten flagged on the fiscal 2026 call. In contrast, CL raised its quarterly dividend from $0.52 to $0.53 starting with the April 2026 ex-date, roughly a 2% increase.

Coverage is another area where PG excels. The company earned $6.89 in fiscal 2026 core EPS against a forward dividend of $4.354. Free cash flow reached $15.835 billion, and management delivered 100% adjusted free cash flow productivity for the year. In contrast, CL's EPS profile is tighter than the competition, with trailing diluted EPS sitting at $2.54 against a $2.12 forward dividend.

Finally, PG has more capital return firepower. The company returned over $15 billion to shareholders in fiscal 2026, including over $10 billion in dividends and $5 billion in share repurchases. Management guided to a repeat performance in fiscal 2027.