PG Outshines KMB in Retirement Dividend Stakes
Kimberly-Clark's higher dividend yield might be attractive to retirees seeking income, but Procter & Gamble (PG) has several key advantages that make it a better choice for long-term retirement income. PG pays out dividends covered by earnings and cash flow, unlike Kimberly-Clark (KMB), which is struggling with its payout ratio.
PG has also been consistently increasing its dividend over the past 70 years, with a record of 136 consecutive years of payments. In contrast, KMB's streak stands at 54 years, and its latest quarterly payout increase was modest.
The durability of PG's brands is another significant factor in favor of the company. Its portfolio includes well-known brands such as Tide, Gillette, and Crest, which have strong pricing power due to their high-performance claims. This allows PG to maintain premium prices and protect its margins from store-brand competition.