Dividends in Focus: The Procter & Gamble Company (PG)
Shares of consumer products maker Procter & Gamble (PG) had a solid 2013, gaining over 20%. Let’s take a look at what’s in store for the company in 2014, along with what investors can expect from a dividend standpoint.
Procter & Gamble’s Current Dividend Policy
P&G pays a quarterly dividend of 60.15 cents per share, or $2.41 on an annualized basis, and its yield currently sits just under the 3% level. The company is a member of an elite group of stocks that have raised their dividends each year for over 50 years, and 2013 saw a 7% payout boost. This move mirrored the company’s 7% raise in 2012. With a 2013 payout ratio of 56% and an expected 2014 payout ratio under 52%, the company has plenty of room to raise its dividend for a 58th consecutive year.
Dividend.com DARS Ratings for Procter & Gamble
|Relative Strength||Stock is performing in-line with the market or better.|
|Overall Yield Attractiveness||Stock’s dividend yield is adequate.|
|Dividend Reliability||This rating is related to the length and consistency of a company’s dividend payouts, as well as our opinion on how likely the company is to continue payouts in the future.|
|Dividend Uptrend||Dividend payouts are consistent, but increases small.|
|Earnings Growth||Earnings estimates have been cut slightly.|
The Bottom Line
There’s a lot to like about Procter & Gamble. The company’s dividend history is almost unmatched, its long-term chart looks great, it owns many fantastic consumer product brands, and it boasts a strong management team. Although the stock’s valuation is a bit rich at 18x 2014 estimates, it should prove to be a great target on pullbacks. Plus, should the wider market see a sustained decline, you can bet that many investors will target P&G as a safe haven pick.
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