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Is Procter & Gamble a Good Dividend Stock Right Now?

Published 07/28/2021, 09:33 AM
Updated 07/28/2021, 10:31 AM
© Reuters.  Is Procter & Gamble a Good Dividend Stock Right Now?

© Reuters. Is Procter & Gamble a Good Dividend Stock Right Now?

One of the top players in the consumer goods industry, Procter & Gamble (PG), has paid dividends for 131 consecutive years and recently declared an $0.87 quarterly dividend. However, given a decline in interest from hedge fund investors, is it wise to bet on the stock now? Let’s find out.Consumer staples giant The Procter & Gamble Company (PG) declared a quarterly dividend of $0.87 per share payable on August 16. With 65 years of consecutive dividend increases, PG is a dividend aristocrat. Its dividend pay-outs have grown at a 4.5% CAGR over the past five years and at a 5.7% rate over the past three years. While its four-year average dividend yield is 2.83%, its current dividend translates to a 2.47% yield.

Thanks to its resilient business model, PG’s revenue and EPS have grown at 4.1% and 13% CAGRs, respectively, over the past three years. Also, the stock has gained 7.4% over the past three months to close yesterday’s trading session at $140.85.

However, there has been a decrease in hedge fund interest in the stock recently. Also, because the COVID-19 pandemic-led surge in demand for consumer goods is gradually decreasing, PG’s pace of growth looks uncertain in the near term.

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