This Dividend King Has Raised Its Payout Through Every Recession Since the 1950s. I'm Buying Before the End of the Year.
Key PointsProcter & Gamble’s dividend increase streak spans 71 years.
Procter & Gamble (PG) holds the record for raising its dividend through every recession since 1955. This period of uninterrupted dividend increases spans 71 years, placing the company among the rare Dividend Kings – those with a payout-increase streak of at least 50 years. The 1955 launch of Procter & Gamble's dividend increase streak is a testament to the company's commitment to long-term value creation.
This commitment to steady dividend hikes is a reflection of Procter & Gamble's all-weather durability, a trait that investors greatly appreciate. Despite some recessions having been brief, others have lasted over a year. Yet, Procter & Gamble's dividend has consistently ticked higher through each of these economic downturns. The company's dividend is considered safe with a payout ratio of 67.8% of free cash flow, which is not alarmingly high, especially given its position as one of the highest in the household products industry.
The robust free cash flow and the company's commitment to dividend growth make Procter & Gamble an attractive investment option, particularly in the context of potential economic uncertainties.
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