June 07, 2025 a 07:31 am
📊 PG: Dividend Analysis - The Procter & Gamble Company
The Procter & Gamble Company provides a robust dividend profile ideal for income-focused investors. With a history of 56 consecutive years of dividend increments, the company showcases not only stability but also a commitment to returning value to shareholders. The present dividend yield of 2.46% is enriched with a promising growth trajectory, despite some market volatilities. Clean capital management and moderate payout ratios indicate sustainable earnings distributions. 📈
Overview
The Procter & Gamble Company operates in the highly competitive consumer staples sector, renowned for its robust brand portfolio. The company's dividend yield stands at 2.46%, complemented by an annually distributed dividend of $3.95 per share. With an impressive dividend history spanning 56 years without any cuts, it underscores their commitment to consistent shareholder returns.
| Factor | Details |
|---|---|
| Sector | Consumer Staples |
| Dividend Yield | 2.46% |
| Current Dividend per Share | 3.95 USD |
| Dividend History | 56 years |
| Last Cut or Suspension | None |
Dividend History
The impressive 56-year streak of unbroken and growing dividend payments highlights the strategic financial management at PG. This track record is essential for long-term investors prioritizing reliability and growth of income. 📉
| Year | Dividend per Share (USD) |
|---|---|
| 2025 | 2.0633 |
| 2024 | 3.9602 |
| 2023 | 3.7354 |
| 2022 | 3.6097 |
| 2021 | 3.4001 |
Dividend Growth
The measured dividend growth rate is a strong indicator of the company's ability to enhance shareholder returns progressively. A 3-year CAGR of 5.21% and a 5-year CAGR of 6.03% underscore steady income growth, crucial for long-term wealth accumulation. 📈
| Time | Growth Rate |
|---|---|
| 3 years | 5.21% |
| 5 years | 6.03% |
The average dividend growth is 6.03% over 5 years. This shows moderate but steady dividend growth.
Payout Ratio
The payout ratio provides insight into dividend sustainability. With an EPS-based ratio of 59.77% and an FCF-based ratio of 61.57%, PG maintains disciplined payout management, ensuring dividends are sustainable within their earnings and cash flows. ⚠️
| Key figure | Ratio |
|---|---|
| EPS-based | 59.77% |
| Free cash flow-based | 61.57% |
The ratios are indicative of a conservative approach to dividends, balancing shareholder return with growth reinvestment. 🔍
Cashflow & Capital Efficiency
Efficient cash flow and capital allocation are crucial for sustaining dividends. PG demonstrates a Free Cash Flow Yield of 3.91% that aligns with high earnings yield, underscoring proficient capital efficiency. The CAPEX/Operating Cash Flow measure reflects prudence in reinvestments. 🏦
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 4.30% | 3.84% | 3.84% |
| Earnings Yield | 3.87% | 4.08% | 4.17% |
| CAPEX to Operating Cash Flow | 16.74% | 18.17% | 18.87% |
| Stock-based Compensation to Revenue | 0.67% | 0.66% | 0.66% |
| Free Cash Flow / Operating Cash Flow Ratio | 83.26% | 81.83% | 81.13% |
The data affirms PG's robust cash flow stability and capital efficiency, fostering a conducive environment for dividend sustainability. 📉
Balance Sheet & Leverage Analysis
Remaining financially stable while distributing dividends is essential. PG's leverage ratios reflect a prudent capital structure, noticeable in its Debt-to-Equity ratio of 0.66 and a satisfactory liquidity with current and quick ratios above industry norms. 💼
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 0.66 | 0.76 | 0.69 |
| Debt-to-Assets | 0.27 | 0.29 | 0.28 |
| Debt-to-Capital | 0.40 | 0.43 | 0.41 |
| Net Debt to EBITDA | 1.05 | 1.25 | 1.18 |
| Current Ratio | 0.73 | 0.63 | 0.65 |
| Quick Ratio | 0.53 | 0.44 | 0.45 |
| Financial Leverage | 2.43 | 2.58 | 2.52 |
PG's effective management of leverage and strong balance sheet support its continuous shareholder returns. 🏦
Fundamental Strength & Profitability
PG's profitability ratios indicate robust fundamentals. With net profit margins nearing 18% and healthy ROE of over 30%, the company showcases superior profitability and operational efficiency. 📈
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 29.59% | 31.33% | 31.64% |
| Return on Assets | 12.16% | 12.13% | 12.58% |
| Margins: Net | 17.70% | 17.87% | 18.38% |
| Margins: EBIT | 23.42% | 23.30% | 22.99% |
| Margins: EBITDA | 27.01% | 26.55% | 26.49% |
| Margins: Gross | 51.39% | 47.86% | 47.43% |
| Research & Development to Revenue | 0% | 0% | 0% |
Procter & Gamble exhibits robust profitability metrics, augmenting its attractive dividend profile. 🤑
Price Development
Dividend Scoring System
Our comprehensive scoring system evaluates PG's dividend quality across multiple dimensions, combining yield, stability, growth, and payout policies.
| Criteria | Score | Score Bar |
|---|---|---|
| Dividend Yield | 4 | |
| Dividend Stability | 5 | |
| Dividend Growth | 4 | |
| Payout Ratio | 4 | |
| Financial Stability | 5 | |
| Dividend Continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 5 |
Total Score: 36/40
Rating
Procter & Gamble is a high-quality dividend payer with robust financials and predictable dividend growth, warranting a strong buy recommendation for dividend-focused investors. 📈✅