Staples Giants Keep Writing Bigger Checks Amid Economic Downturn
Consumer staples companies have been increasing their dividend payouts for decades, and some have managed to raise them through every economic downturn. According to a recent report, Procter & Gamble (NYSE:PG) has confirmed its 70th consecutive year of dividend increases and the 136th consecutive year of dividend payments since its incorporation in 1890.
Procter & Gamble's quarterly payout of $1.0885 per share marks the latest increase, with shares closed at $146.92 on September 3, up 4.75% year to date. The company's fiscal 2026 report showed operating cash flow of $19.556B, capex of $4.409B, and free cash flow of $15.835B, up 12.74%. This provides comfortable coverage for its dividend payout of $10.232B.
Coca-Cola (NYSE:KO) is another consumer staples company that has been raising its dividend payouts, with a current quarterly dividend of $0.53 per share and an annualized forward payout of $4.354 per share. The company's fiscal 2025 dividend payments were $8.779B against operating cash flow of $7.408B.
Colgate-Palmolive (NYSE:CL) also has a history of raising its dividend payouts, with a current quarterly dividend of $0.53 per share and an annualized forward payout of $2.12 per share. The company's fiscal 2025 operating cash flow was $4.198B against capex of $564M and dividend payout of $1.823B.