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.
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.
What do you think of the company and its recent dividend increase?
Thanks for reading, and don’t forget to follow me for great investment ideas.