Friday, April 13, 2012
Procter & Gamble Increases Dividend
Today Procter & Gamble (PG) announced it has increased the quarterly dividend 7.05% to $.562 per share. Amazingly this increase represents 56 consecutive years of dividend growth. This is one of the longest streaks you'll find anywhere. The baseline I look for in dividend growth stocks is a 3% yield with increases averaging 7%. PG's increase meets this objective and handily beats inflation. Based on the new dividend, PG's payout ratio is 66.5% which is a little higher than I'd like. I use many Procter and Gamble products including Gillete razors, shaving cream, deodorant, and body wash; Gain dish soap and laundry detergent, Mr. Clean cleaning sprays and floor cleaner; Pert Plus shampoo, Crest toothpaste, Oral-B toothbrushes, Charmin toilet paper; Duracell batteries; and Pringles snacks (which will be sold to the Kellog company). I own this company because I use many of the products it makes, plus I like it as a dividend growth stock.