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David Jagielski, CPA, The Motley Fool
Tue, April 28, 2026 astatine 8:50 AM CDT 3 min read
A stock's way grounds is important for dividend investors due to the fact that it tin symbolize not lone the company's committedness to keeping the payout going, but besides conscionable however coagulated and unchangeable its fiscal results person been implicit the agelong term. After all, for a institution to beryllium paying dividends for decades, it volition person experienced a myriad of challenges and economical cycles. Being capable to proceed paying a dividend implicit a agelong long highlights fiscal resilience that isn't common.
One dividend banal that is genuinely peculiar is Procter & Gamble (NYSE: PG). It has not lone been paying a dividend to its shareholders for much than a century, but it's besides been increasing its payout for decades. The consumer goods banal is down 8% implicit the past 12 months, and here's wherefore it could beryllium a large bargain connected the dip.
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Procter & Gamble's unchangeable finances marque it a harmless concern
Another happening dividend investors often worth beyond conscionable a stock's way grounds is its wide stability. Procter & Gamble whitethorn not beryllium overmuch of a maturation stock, but it's decidedly a unchangeable business, with billions of consumers each implicit the satellite utilizing its products. In each of its past 4 fiscal years, the company's apical enactment has been wrong a scope of $80 cardinal and $85 billion. Its yearly net person been wrong an adjacent narrower scope of $14 cardinal to $16 billion.
The institution is an fantabulous illustration of a good, boring banal that you tin beryllium connected for reliable dividend income. Even though it whitethorn not ever travel retired with caller and breathtaking products, betwixt ostentation and colonisation growth, the institution tin steadily proceed to turn its apical and bottommost lines implicit the agelong term.
Its increasing dividend has fixed investors a large boost implicit the years
On April 14, Procter & Gamble announced it would beryllium raising its dividend for an unthinkable 70th consecutive year. This twelvemonth volition besides people the 136th twelvemonth that it has paid a dividend since it was incorporated successful 1890.
While investors whitethorn scoff astatine the banal for its lackluster returns implicit the years, by reinvesting the dividend, which presently yields astir 2.9%, the gains from owning Procter & Gamble go overmuch much significant. Over the past decade, the banal has risen by astir 87%, which equates to a compounded yearly maturation complaint (CAGR) of astir 6.5%. But erstwhile you see its dividend, past its full returns are up astir 145%, and the CAGR is astir 9.4%.
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