Top Dividend Stocks #10: Procter & Gamble (PG)
Dividend Yield: 3.09%
YTD Performance: -4.23%
52-Week Return: +4.33%
Procter & Gamble (PG), the age-old household name that produces a plethora of consumer goods that we use everyday, is a great example of the kind of solid dividend stocks I’m talking about. The company has been increasing its dividend payouts every year for 57 years, and the current quarterly distribution now stands at 60 cents per share.
Although the rate at which PG has increased its distributions has been dropping recently, the pace has been fast enough to keep up with the rising share price, and the stock maintains a steady dividend yield that fluctuates right around 3%. PG was just barely left off of last month’s list of Dow dividend stocks, but the stock’s recent decline has pushed the dividend yield back up to 3.1%.
However, the valuation has been stretched for a while now, even after falling from the all-time high of $85.82 it made back in November. Its current estimated 2014 P/E ratio stands at about 18.5, which is a bit concerning. Earnings growth is projected at about 4% for the first half of 2014, but analysts predict that could rise to 11.44% over the next three years. For those investors reluctant to wait for growth, the $2.40 annual payout should serve as an incentive to own shares of this leader among dividend stocks.