P&G's Moat and Dividend Growth Make It a Forever Holding

Procter & Gamble (PG) stands out among blue chip dividend stocks due to its strong competitive moat. The company behind popular consumer brands such as Gillette, Pampers, and Tide has a portfolio of over 20 brands generating at least $1 billion in annual sales.

The company's market power and leverage allow it to maintain shelf space with major retailers, making it difficult for new entrants to gain traction. This defensive position helps mitigate the risk of losing market share during economic downturns.

One of the key reasons to hold P&G long-term is its 70-year consecutive growth record in dividend payments. The company has a forward dividend yield of nearly 3% and has increased its dividend for 70 years straight, earning it a spot among the Dividend Kings.

The current share price of $146.23 makes P&G shares seem fairly priced at 21 times forward earnings. However, considering the recent headwinds faced by the company due to high crude oil prices, the stock may be undervalued and poised for growth as cost pressures normalize and earnings return to prior levels.

Management's commitment to returning $15 billion to shareholders via dividends and buybacks is also a positive sign. With productivity improvements of $2.8 billion last fiscal year, P&G can plow these savings into additional brand investment, further strengthening its competitive position.