Dividend Increase: The Procter & Gamble Company (PG)

The Procter & Gamble Company (PG) just declared $0.7172 quarterly dividend. This is an increase of 4.0% from $0.6896.

I own 15 shares, so this will increase my annual dividend income by $0.3312 to a total of $5,304.42

I updated both my Passive Income page as well as my Portfolio page to reflect the changes.

My Thoughts:

This dividend increase is the 62 straight years that PG has increased its dividends. That is an amazing feat only a few companies can say that they have been increasing its dividend for 60+ years. PG has a dividend payout ratio of 72.8%. This is very high for this mature company.

The good news is that CFRA is predicting a 3-year earning growth of 7%. I am actually happy with this 4% dividend increase because the last two dividend increases were 3% for 2017 and 1% for 2016. The company has a 5-year dividend growth rate of 4.4%. So there is a lot to desire from this company. They have mediocre dividend yield with low dividend growth for the foreseeable future.

I find that the company is currently Fair valued to Overvalued. I give this stock a HOLD recommendation.

I do not plan to add any more shares of PG at the moment; however, If I do see a significant price drop, I may consider adding more shares. I do have other companies that I am currently looking at and that I find more attractive at this time, so please stay tuned and make sure to connect on with me on Twitter and Facebook for more information.

Source: fastgraphs.com

What do you think of the company and its recent dividend increase?

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