Dividend Aristocrats In Focus: Procter & Gamble – Sure Dividend

Up to date on February twentieth, 2026 by Bob Ciura

The Dividend Aristocrats are broadly referred to as the most effective dividend progress shares to purchase and maintain for the long run.

These corporations have generated robust earnings 12 months after 12 months, even throughout recessions, and have confirmed the flexibility to develop their earnings steadily over a few years.

The Dividend Aristocrats are a bunch of corporations within the S&P 500 Index, with 25+ consecutive years of dividend will increase. Of the shares that comprise the S&P 500 Index, simply 69 presently qualify as Dividend Aristocrats.

You may obtain an Excel spreadsheet with the total checklist of Dividend Aristocrats by clicking on the hyperlink under:

Disclaimer: Positive Dividend isn’t affiliated with S&P World in any approach. S&P World owns and maintains The Dividend Aristocrats Index. The data on this article and downloadable spreadsheet relies on Positive Dividend’s personal evaluation, abstract, and evaluation of the S&P 500 Dividend Aristocrats ETF (NOBL) and different sources, and is supposed to assist particular person traders higher perceive this ETF and the index upon which it’s based mostly. Not one of the data on this article or spreadsheet is official knowledge from S&P World. Seek the advice of S&P World for official data.

As soon as per 12 months, we evaluation every of the Dividend Aristocrats. Up subsequent within the collection is the buyer merchandise behemoth Procter & Gamble (PG).

P&G has paid dividends for 134 years and has elevated its dividend for 69 consecutive years.

Not solely is the corporate a Dividend Aristocrat, however additionally it is a Dividend King as nicely. The Dividend Kings have elevated their dividends for 50+ consecutive years.

Procter & Gamble is likely one of the most well-known dividend shares, largely attributable to its extraordinarily lengthy dividend historical past and its broadly recognizable manufacturers.

This text will talk about P&G’s latest portfolio transformation, future progress prospects, and inventory valuation.

Enterprise Overview

Procter & Gamble is a client merchandise large that sells its merchandise in additional than 180 international locations and generates over $85 billion in annual gross sales.

A few of its core manufacturers embody Gillette, Tide, Charmin, Crest, Pampers, Febreze, Head & Shoulders, Bounty, Oral-B, and lots of extra.

Throughout P&G’s huge portfolio restructuring over the previous few years, the corporate bought off dozens of its client manufacturers. At this time, P&G has slimmed down to only ~65 manufacturers, down from 170 beforehand.

The advantage of the restructuring is that P&G held on to its core client manufacturers whereas shedding low-margin companies with restricted progress potential.

This transformation has weighed on the highest line, however it ought to permit Procter & Gamble to give attention to its strongest, most worthwhile manufacturers shifting ahead. Certainly, the corporate has returned to strong progress mode within the final seven years.

Development Prospects

Procter & Gamble has grown its earnings-per-share by 7.1% per 12 months on common over the past decade. Gross sales have grown 2% per 12 months on common over this era, and internet revenue margin has elevated.

P&G has continued to generate regular ends in latest quarters. In late January, Procter & Gamble reported (1/22/26) outcomes for the second quarter of fiscal 2026 (its fiscal 12 months ends June thirtieth).

Its gross sales edged up 1% whereas natural gross sales remained flat over the prior 12 months’s quarter, as modest value hikes have been offset by barely decrease volumes. Core earnings-per-share remained flat at $1.88, beating the analysts’ consensus by $0.02.

The agency gross sales amid sustained value hikes are a testomony to the energy of the manufacturers of Procter & Gamble. Nevertheless, we word a outstanding deceleration in value hikes within the final seven quarters.

This means that the corporate can not maintain elevating its costs aggressively anymore. Resulting from delicate client spending amid elevated financial uncertainty, Procter & Gamble reiterated its modest steerage for fiscal 2026.

It expects 0%-4% progress of natural gross sales and 0%-4% progress of core earnings-per-share.

Total, we anticipate 5% common annual progress of earnings-per-share.

Aggressive Benefits & Recession Efficiency

P&G has a number of aggressive benefits. The primary is its robust model portfolio. P&G has a number of manufacturers that generate $1 billion or extra in annual gross sales.

The ~65 remaining core manufacturers maintain management positions of their respective classes. These merchandise are related to top quality, and shoppers can pay a premium for them.

The corporate invests closely in promoting to retain its aggressive place, which it may possibly do due to its monetary energy.

The corporate invests billions extra every year in analysis and improvement. This funding is a aggressive benefit for P&G; R&D fuels product innovation, whereas promoting helps market new merchandise and acquire share.

P&G’s aggressive benefits permit the corporate to stay worthwhile, even in periods of recession. Earnings held up very nicely throughout the Nice Recession:

• 2007 earnings-per-share of $3.04
• 2008 earnings-per-share of $3.64 (19.7% enhance)
• 2009 earnings-per-share of $3.58 (-1.6% decline)
• 2010 earnings-per-share of $3.53 (-1.4% decline)

P&G had a really robust 12 months in 2008, with almost 20% earnings progress. Earnings dipped solely mildly within the following two years.

This was a really robust efficiency in one of many worst financial downturns prior to now a number of a long time. The corporate continued to carry out nicely throughout 2020-2021 when the coronavirus pandemic despatched the U.S. financial system into recession. As soon as once more, P&G generated secure earnings and raised its dividend.

P&G has a recession-resistant enterprise mannequin. Put merely, everybody wants paper towels, toothpaste, razors, and different P&G merchandise, whatever the financial local weather.

Valuation & Anticipated Returns

Primarily based on the anticipated earnings-per-share of $6.98 for fiscal 2026, P&G is buying and selling at a price-to-earnings ratio of twenty-two.7.

Over the previous decade, shares traded with a median valuation of round 20 instances earnings. As such, shares look like greater than absolutely valued. The improved progress prospects of the corporate look like priced in, after which some.

If P&G’s valuation have been to revert again to twenty instances earnings, which is our estimate of honest worth, future shareholder returns would face a -2.5% annual discount over the subsequent 5 years.

Earnings progress and dividends will assist offset the affect of a contracting price-to-earnings a number of. For instance, we anticipate P&G to generate 5% annual earnings progress, and the inventory has a present dividend yield of two.7%.

Complete returns are anticipated at 5.0% per 12 months, because the affect of a declining valuation a number of successfully offsets the corporate’s anticipated EPS progress.

The present dividend payout is well-covered by earnings. Primarily based on anticipated fiscal 2026 earnings, P&G has a payout ratio of 61%. This leaves sufficient cushion for future dividend will increase every year within the low-to-mid single-digit vary.

Traders ought to anticipate P&G to proceed growing its dividend every year for a few years to return. It has the model energy, aggressive benefits, and profitability to keep up its regular annual dividend will increase over the long run.

Remaining Ideas

P&G has many robust qualities that make it a time-tested dividend progress firm. It has paid a dividend for 134 years. It has additionally earned a spot on each the Dividend Aristocrats and Dividend Kings lists.

Nevertheless, the present valuation – notably above its historic common regardless of a rising-rates atmosphere – leaves one thing to be desired from a price perspective.

In consequence, we have now assigned shares a maintain suggestion, on condition that valuation issues overshadow the corporate’s dividend yield and dividend progress prospects.

Moreover, the next Positive Dividend databases comprise essentially the most dependable dividend growers in our funding universe:

• The Dividend Champions: Dividend shares with 25+ years of dividend will increase, together with these that won’t qualify as Dividend Aristocrats.
• The Dividend Kings: thought of to be the final word dividend progress shares, the Dividend Kings checklist is comprised of shares with 50+ years of consecutive dividend will increase

Should you’re on the lookout for shares with distinctive dividend traits, contemplate the next Positive Dividend databases:

The main home inventory market indices are one other strong useful resource for locating funding concepts. Positive Dividend compiles the next inventory market databases and updates them month-to-month: