#7 - Procter & Gamble (NYSE:PG)
Procter & Gamble Co. (NYSE: PG) is the only consumer staples stock on this list and with good reason. Some of the well-known names in this sector have strongly underperformed the S&P 500 for several years. And although those companies pay solid dividends, this list is about stocks that have a long-term history of delivering market-beating growth.
Over the last 20 years, PG stock has delivered an average total return of over 21%. The company, which is home to some of the world’s most well-known brands, has the products consumers need and the pricing power to drive earnings growth in times of rising inflation. Even with the prospect of inflation being stickier than usual, analysts still forecast 6.8% earnings growth for Procter & Gamble in 2025.
And when it comes to dividends, few do it better than P&G. The company is a Dividend King that has delivered 69 consecutive years of increases. And in the last three years, the company has delivered an average annualized return of around 6.2%, that’s more than twice the rate of inflation.
About Procter & Gamble
Procter & Gamble Co engages in the provision of branded consumer packaged goods. It operates through the following segments: Beauty, Grooming, Health Care, Fabric and Home Care, and Baby, Feminine and Family Care. The Beauty segment offers hair, skin, and personal care. The Grooming segment consists of shave care like female and male blades and razors, pre and post shave products, and appliances.
More- Current Price
- $170.17
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 15 Buy Ratings, 7 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $180.53 (6.1% Upside)
Many growth-oriented investors view dividend stocks as too conservative. However, over the last 90 years, dividends have accounted for approximately 40% of all stock market returns. That seems like money that investors wouldn't want to leave on the table.
When it comes to dividend stocks, you'll frequently hear about dividend yield. This is the amount of money a company pays shareholders for owning one share of its stock divided by its current stock price. Ideally, the higher, the better—but because dividend yield is tied to a stock's price, it's a dynamic number.
A better option is to find a high-yield dividend stock that also pays a regular dividend. And preferably one that increases every year.
One way to find stocks like these is by searching MarketBeat's lists of Dividend Aristocrats and Dividend Kings. These are companies that have increased their dividends for at least 25 or 50 consecutive years, respectively.
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