When it comes to dividends, few companies can match Procter & Gamble (PG). P&G’s list of dividend accolades is long, and impressive.
It is a Dividend Aristocrat, a group of 51 stocks in the S&P 500 Index, with 25+ years of consecutive dividend increases. You can see all 51 Dividend Aristocrats here. In addition, it is a Dividend King, a group of just 19 stocks with 50+ consecutive years of dividend increases. You can see all 19 Dividend Kings here.
P&G has increased its dividend for 61 consecutive years. Going back even further, it has paid a dividend for 127 consecutive years. At its current share price, P&G has a 3.1% dividend yield.
The combination of 100+ years of dividends and a 3%+ dividend yield makes P&G a blue-chip stock, in our view. We have compiled a list of stocks with these two qualities. You can see the full list of blue chip stocks here. This article will discuss why P&G should be considered a blue-chip.
Business Overview
P&G is a diversified, global consumer staples company. It operates around the world, with more than half of annual revenue derived from outside North America. It also has significant exposure to high-growth emerging markets, which make up more than one-third of P&G’s annual sales.
Source: 2016 Annual Report, page 2
This is an unusual climate for P&G. It has drastically restructured its business over the past few years. P&G has divested a number of product lines that were either slowing down, or were in decline.
The major asset sales include:
Over the course of its transformation, P&G went from a massive portfolio of 170 brands, down to 65 brands.
The remaining 65 brands encompass 10 core categories, which P&G believes to be the foundation of its future growth. Importantly, P&G held onto its strongest brands, such as Tide, Pampers, and Crest.
