P&G: The Reliable Dividend Stock for a Turbulent Market
Procter & Gamble is considered one of the best dividend stocks for long-term investors due to its dependable dividend yield and consistent history of raising its payout. The company has increased its dividend for around 70 consecutive years, with a five-year annual growth rate of about 5% to 6%. This makes it a Dividend King.
P&G's business model is recession-resistant, selling essential products in various categories such as beauty, grooming, healthcare, and home care. The company owns well-known brands like Tide, Pampers, Gillette, and Crest. In its latest quarter, P&G reported core earnings per share of $1.59 and revenue of $21.2 billion, both slightly above Wall Street expectations.
Management has committed to paying roughly $10 billion in dividends in fiscal 2026 alone, on top of ongoing share repurchases. The company's payout ratio is around 64% to 66%, meaning it sends back a little under two-thirds of its earnings to shareholders and keeps the rest for reinvestment.