Updated 3/13/25
Procter & Gamble has earned a reputation as one of the most dependable dividend-paying companies in the market. With a history stretching back over 180 years and a stable of iconic brands like Tide, Pampers, and Gillette, this consumer goods giant is a familiar name in households across the globe. But for income-focused investors, the company’s appeal goes far beyond brand recognition.
PG isn’t just a household staple—it’s also a cornerstone in dividend-focused portfolios. As a Dividend King, the company has increased its dividend every year for more than six decades, making it a favorite among investors who prioritize consistency and long-term reliability.
Recent Events
Procter & Gamble recently posted solid quarterly results that, while not flashy, continue to reflect the company’s strength and discipline. Revenue rose modestly by just over 2% year-over-year, pushing the company’s trailing twelve-month sales to $84.35 billion. What really stood out, though, was earnings growth. Net income grew by more than 33% in the most recent quarter—a clear indication of efficiency in an otherwise challenging environment.
Margins also remain impressive. The operating margin is hovering around 27%, and the profit margin sits above 18%. These levels show that the company still commands strong pricing power, despite ongoing cost pressures in areas like shipping and raw materials. PG’s ability to pass through costs and focus on premium offerings continues to work in its favor.
Key Dividend Metrics
📈 Dividend Yield: 2.42%
💵 Annual Dividend: $4.03 per share
📊 Payout Ratio: 63.06%
📅 Dividend Growth Streak: 67 years
⏳ 5-Year Average Yield: 2.40%
🧾 Recent Dividend Date: February 18, 2025
🔖 Ex-Dividend Date: January 24, 2025
Dividend Overview
While PG’s yield isn’t the highest in the market, it makes up for it with reliability. The 2.42% forward yield is slightly above its five-year average and backed by consistent cash flow. With a payout ratio just above 63%, the dividend sits in a sweet spot—investors receive meaningful income, and the company still has room to reinvest in the business or reduce debt.
For long-term investors, Procter & Gamble’s dividend track record is hard to ignore. It’s the kind of stock where the check arrives every quarter, no matter what’s happening in the broader market. That sort of predictability is rare and valuable.
Dividend Growth and Safety
One of the most attractive aspects of PG for dividend investors is its commitment to growing the payout over time. Over the past decade, the dividend has grown at a steady pace—rising from $2.57 per share to $4.03. That works out to an average annual growth rate of about 4.5%, which is both realistic and sustainable for a company of its size.
More importantly, the dividend is well-covered by cash flow. PG generated nearly $19 billion in operating cash flow over the last year, with over $11 billion in free cash flow after investments. That kind of buffer gives management flexibility while ensuring that the dividend remains protected.
The company’s record of 67 consecutive years of increases speaks to the discipline of its financial planning and the strength of its underlying business. This isn’t a management team that cuts corners or makes rash decisions. When it comes to shareholder returns, they’re playing the long game.
Chart Analysis
Current Position in the Market Cycle
Looking at the chart for Procter & Gamble (PG), we’re seeing a stock that has been moving within a broad consolidation range. There was a steady upward trajectory through the spring and summer months, followed by increased volatility in the fall and a noticeable decline through November. That stretch from September to December shows characteristics of a potential distribution phase—highs being sold into, rallies losing momentum, and a shift in the volume pattern suggesting weakening buying interest.
After the December low, PG began climbing again, but without strong conviction. The early part of 2025 gave a bounce, but the rally faced resistance near the prior highs around $175–$180. That suggests we’re not in a full-blown markup phase yet. Instead, this looks more like a secondary test following a markdown attempt—possibly a return to reaccumulation or the start of a new range being built.
Moving Averages and Price Action
The 50-day simple moving average is currently crossing just above the 200-day average. This type of crossover often gets labeled as a bullish signal, but context matters. The price action around this crossover is messy—there’s no clean follow-through. Price is hovering right at the 200-day moving average, closing at 168.37, slightly below the short-term 50-day average of around 169. That kind of sideways behavior near the averages hints at indecision. Buyers and sellers are still figuring things out.
Volume Behavior
Volume has not confirmed any major trend changes. It’s been relatively subdued with no obvious spikes to back up breakouts. The few high-volume bars we see in September and December correspond to selloffs, not rallies. That tells us institutional interest hasn’t been aggressively on the buy side. Without volume expanding on up days, it’s tough to argue that a fresh markup phase has kicked off.
RSI Indicator
The Relative Strength Index (RSI) has stayed mostly in the middle of the range. It spent a good part of late 2024 drifting below the 50 line—reflecting mild bearish momentum—but never fully entered oversold territory. More recently, the RSI began climbing into the 60s but has now started turning lower again, which mirrors the recent pullback in price. There’s no strong bullish divergence or trend confirmation from the RSI at this point.
Last Five Candles
Zooming in on the most recent five candles tells a subtle story. There was a push higher toward $175, but the top wicks on a few of those candles suggest selling pressure on strength. Buyers are stepping in, but they’re not holding control by the end of the day. The last two candles show clear lower highs and lower lows, with a close below the open—a sign that momentum is shifting again in favor of the bears, at least short term.
Price Action Relative to the Range
PG continues to trade in a range between roughly $153 and $180. The inability to break and hold above the $175–$180 zone, despite multiple attempts, reinforces that this is still a broad consolidation. Until there’s a sustained close above that zone with confirmation from volume and RSI, the stock is likely to continue chopping within this channel.
Analyst Ratings
📈 Recent Upgrades
On November 25, 2024, D.A. Davidson upgraded Procter & Gamble from “neutral” to “buy” and raised the price target from $160 to $209. The shift in outlook was driven by a more favorable view of the company’s performance in China. While sales during the key 11/11 shopping festival were still down 5% year-over-year, this was a notable improvement compared to the 25% drop in the previous year. The launch of the SK-II LXP face serum also played a key role, especially following the removal of restrictions on Japanese imports, allowing PG to regain momentum in an important segment of the Asian beauty market. These signs of stabilization in China added confidence to the long-term narrative for investors.
📉 Recent Downgrades
Back on September 30, 2024, Barclays took a more cautious stance, maintaining an “equal weight” rating but trimming the price target to $163. The downgrade was more about valuation concerns and possibly the soft volume trends in some developed markets. While PG remains a stable and mature business, expectations around margin pressures and slower consumption growth may have contributed to a less enthusiastic near-term view.
🎯 Consensus Price Target
Right now, the average 12-month price target from analysts sits around $181.47. That implies a potential upside of about 9.5% from the current stock price. The range of targets stretches from a conservative $159 to a more optimistic $209, reflecting mixed sentiment depending on how analysts view PG’s growth runway, pricing power, and global positioning. With 21 analysts covering the stock, most are leaning toward a hold-to-moderate-buy stance, signaling a wait-and-see attitude on whether PG can break out of its range-bound trading pattern.
Earning Report Summary
Procter & Gamble’s latest earnings report came in with the kind of steady results that long-time shareholders have come to expect. Revenue for the quarter reached $21.9 billion, up 2% from the same period last year. Most of that growth came from a 3% increase in organic sales, which is a solid sign that underlying demand is holding up. A little bit of that came from higher volumes, and a bit more from a favorable mix of products sold.
Earnings were where things got a bit more interesting. The company posted earnings per share of $1.88, which was a healthy jump from the $1.40 they reported a year ago. On a core basis—taking out some of the one-off items—EPS rose a more modest 2%, which is more in line with what they had previously guided for. It’s not flashy, but it’s right on script for a company like PG.
Cash flow was another strong point. Operating cash flow came in at $4.8 billion, and free cash flow productivity hit 84%, which is a fancy way of saying they’re doing a good job turning earnings into real cash. They handed $4.9 billion back to shareholders this quarter alone, split pretty evenly between dividends and share repurchases. That consistency in capital return is a big part of what keeps investors hanging onto this name.
When you break it down by business segments, the Baby, Feminine & Family Care division led the way with 3% growth. Fabric & Home Care and Health Care both chipped in with 2%, while Grooming was up 1%. The Beauty segment was flat, which isn’t ideal, but also not unexpected given the recent softness in that category across the board.
Looking at regions, North America and Europe each posted 4% organic sales growth, which is encouraging considering both are mature markets. North America saw some solid share gains, with most categories holding their ground or improving. Meanwhile, growth in enterprise markets like Latin America and parts of Asia was flat—steady but unspectacular.
PG didn’t change its full-year outlook, still aiming for 2% to 4% sales growth and a 5% to 7% bump in core earnings per share. They also reiterated their plan to buy back $6 to $7 billion in stock for the year. All in all, a measured and predictable quarter, which is exactly what a lot of investors are hoping for from a name like this.
Financial Health and Stability
Looking at the balance sheet, PG is in solid shape. It holds over $10 billion in cash, and while the current ratio of 0.76 may seem low on paper, it’s common for consumer staples companies that operate with lean inventories and fast receivables. Liquidity isn’t an issue.
Debt is on the higher side, with nearly $35 billion in total debt and a debt-to-equity ratio just above 67%. But thanks to PG’s consistent earnings and strong credit standing, the debt load is manageable. Interest costs are covered easily by earnings, and the company continues to maintain excellent access to capital markets.
Return on equity is north of 31%, and return on assets is close to 11%, which shows how efficiently the business is being run. PG continues to generate solid returns without taking on unnecessary risk.
Valuation and Stock Performance
PG stock isn’t cheap—and it never really is. At more than 26 times trailing earnings and 22.6 times forward earnings, it trades at a premium. That reflects the company’s track record, steady performance, and perceived safety. Investors are willing to pay up for quality, and Procter & Gamble fits the bill.
The PEG ratio of 3.33 confirms this isn’t a fast-growing stock. But it doesn’t have to be. Dividend investors are often more concerned with sustainability than breakneck growth. With a price-to-sales ratio just under 5 and a price-to-book of 7.76, this is a stock that’s valued for its consistency.
Over the past year, PG shares have climbed a little over 4%—trailing the broader market. But the total return story includes quarterly dividends, which help cushion the performance during sideways or slower periods. The current share price sits around $165, below the 52-week high of $180 and under both the 50-day and 200-day moving averages, suggesting the stock may be in a holding pattern for now.
Risks and Considerations
Even with all its strengths, PG isn’t without its risks. The premium valuation leaves little room for disappointment. If earnings fall short or cost pressures creep back in, the stock could be vulnerable to a pullback.
Global exposure also means PG is affected by currency movements. A strong dollar can weigh on international earnings, and geopolitical risks or economic slowdowns in emerging markets could impact sales. While the company has managed these headwinds well so far, they remain worth watching.
Competition is another factor. PG’s brands are strong, but they aren’t immune to the rise of private-label products or newer, more agile players in the consumer space. Innovation and marketing are key to maintaining its leadership position, and the company must continue to evolve to stay ahead.
There’s also growing pressure around environmental and social issues. From packaging waste to supply chain transparency, consumer expectations are rising. PG will need to keep making progress on ESG initiatives to maintain its reputation and long-term investor support.
Final Thoughts
For investors focused on generating income from reliable sources, Procter & Gamble still checks a lot of boxes. It may not offer the highest yield or fastest growth, but what it does offer is a combination of predictability, safety, and long-term commitment to shareholders.
The company has proven that it can weather economic cycles, manage costs, and deliver steady results. That’s what makes it such a mainstay in income portfolios. Whether you’re building a retirement plan or simply looking for steady dividend payers, PG is the kind of stock that provides peace of mind.
It’s not a flashy name, but it’s one that keeps delivering, quarter after quarter, year after year. And for many income-focused investors, that’s exactly what they’re looking for.