P&G's Dividend Streak Continues Despite Market Skepticism

Procter & Gamble (PG) surprised investors by raising its dividend for the 70th consecutive year in May, sending out $1.08 per share. Despite this, shares have declined around 5% over the past year and now trade at $145.79.

The market's skepticism is rooted in concerns about tariffs and a guidance bias toward the lower end of the range. However, P&G's cash flow statement reveals a different story.

In Q3 FY2026, the company generated operating cash flow of $4.045 billion, up 9% year over year, and free cash flow of $3.026 billion, up 6%. This has left the company with a significant cushion to cover its dividend payments and other expenses.

Looking at the full-year view, P&G's FY2025 delivered $17.818 billion in operating cash flow against $9.872 billion in dividends paid, resulting in a coverage ratio of 1.80x. Free cash flow of $14.045 billion covered the dividend with $4 billion to spare.