Dividend stock - Procter & Gamble (PG) No. 1 in the essential consumer industry!

It is likely to be the last corporate posting of dividend stocks in May.

It is Procter & Gamble (PG). If you look at the consumer staples ETF, you can see that PG is the No. 1 market cap. In addition, we will compare the essential consumption/consumption companies whose sales remain unchanged in the face of the economic crisis.

Companies represented by economic defense stocks are listed in the order of stock price growth.

 

MCD (McDonald's)> WMT (Wal-Mart)> PG (Procter & Gambler) = KO (Coca-Cola) = PEP (Pepsi)

However, except for PG and KO, all dividend stocks for March, June, September, and December were posted on PG in order to find dividend stocks for February, May, August, and November.

 

And among the companies that have achieved dividend growth for more than 50 years, let's compare JNJ (58) KO (58) PG (64) companies with a dividend rate of 2% or more.

 

Looking at the recent five-year chart, the order is JNJ=PG> KO=PEP. Therefore, PG can expect market gains by selecting a dividend stock.

 

-About Company

Founded in 1837, Procter & Gamble is headquartered in Cincinnati, Ohio, USA, and employs 105,000 people. The business field is divided into five divisions: beauty, cleanliness management, health management, housekeeping, baby, female and family management.

 

Mainly through wholesalers, grocery stores, member club stores, pharmacies, department stores, distributors, baby stores, specialty beauty stores, e-commerce, high frequency stores and pharmacies, they sell their products to about 180 countries and regions. Selling brands include Olay, Old Spice, Safeguard, Head & Woulders, Pantene, Rejoice, Mac3, Prestobarba, Benus, Cascade, Dawn, Prevreze, Mr.Clean, Bounty, and Charmin. In terms of sales, fabric and home care 30%, infants & women and family care 30%, beauty products 15%, and healthcare 15%.

 

It seems to sell a wide variety of household goods. First of all, there are Downey, Gillette, Febreze, and Oralbi that I know. In terms of market share analysis, it ranks 1st in Fabric & Home Care (10%), 1st in Baby & Family Care (35%), 1st in Beauty Care (15%), and 3rd in Health Care (4.75%). All of them are ranked first in the consumer staples sector, except for losing the first place to healthcare JNJ (9%).

 

-Stock chart

Compared to SPY, the stock price is similar to the market growth rate.

In the past five years, the comparative graph has shown the same profitability before the corona in terms of growth, but has been slow after the corona.

 

-Financial Statements

Market Cap: $324B

Odds: 2.45% Dividend Growth

Rate: 5%

Dividend Growth Year: 64 years

Sales and operating profit are steady. The operating margin is good at around 20%.

Certainly, since it is sold as a consumer staple, it is showing steady operating profit. Compared to the companies I posted so far, it is unfortunate that the market capitalization of 350 trillion won less than 20 trillion won per year, but it is not a bad figure when looking at the operating margin.

 

 

-Dividend details

It is a company that has achieved dividend growth for 64 consecutive years.

Even though it has achieved dividend growth for 64 years, the dividend growth rate is not bad. This is because KO or PEP only increases by 2-3%. However, in the years when the stock price is strong, it clearly shows dividend growth, showing a shareholder-friendly appearance.

Total Dividend Rating: Procter & Gamble pays an annual dividend of $3.16 per share and currently has a dividend yield of 2.45%. Procter & Gamble has been raising its dividends for 64 consecutive years, indicating that the company has a strong commitment to maintaining and increasing its dividends. The Procter & Gamble's dividend payout ratio is 61.72%. This payout rate is below 75% at a healthy and sustainable level. Based on expected earnings, The Procter & Gamble will have a 52.49% dividend payout ratio next year. This indicates that The Procter & Gamble can maintain or increase its dividend.

 

PG's 5-year dividend rate trend

-Conclusion

1. Dividend stocks are comparable to dividend stocks that occupy the No. 1 market share and show dividend growth for 64 years.

2. The current market dividend ratio of 2.4% is a bit unfortunate, but it seems appropriate to choose the consumer staples PG as dividend stocks for February, May, August, and November.