Top Dividend Stocks #10: Procter & Gamble (PG)
Dividend Yield: 3.10%
YTD Performance: +1.88%
52-Week Return: +7.57%
Procter & Gamble (NYSE:PG) beat earnings-per-share estimates when it announced its third-quarter results last week, but the rest of the report was essentially in line with analysts’ expectations. The EPS reading marked an increase of about 5% from a year earlier, and organic sales rose by 3%, but revenue and gross profits both fell year-over-year. The stock gapped lower on its report day, but has since made up all of the losses and now trades just under the $83 level.
There are a number of other reasons why PG made it back onto our list in April after being knocked off by Coca-Cola (NYSE:KO) last month. First, the company increased its cash dividend from 60.15 cents to 64.36 cents for the current quarter — an increase of 7%, which makes for a current dividend yield of 3.1%.
Second, the company only pays out about 65% of its earnings to shareholders, so there is the chance that its $2.57 annual dividend could be increased in the future. Finally, PG maintains a 57-year track record of dividend increases, which qualifies the stock as one of the S&P 500’s Dividend Aristocrats.
The company’s CEO also remains committed to keeping investors happy with steady quarterly distributions, and will continue to implement cost-cutting measures that should save billions of dollars over the next several years.