Then and Now – Procter & Gamble
Welcome to another Then and Now post, a continuation of my series where I revisit some older blogposts and either rip them to shreds (because my thinking has changed on such subjects) or I’ll confirm my position on various personal finance topics or specific stock and ETF investments.
You can check out my previous posts in this series about these stocks below:
Today’s post is about a U.S. dividend paying stock I’ve owned for many years now: Procter & Gamble (PG:US).
- I started writing about this stock back in March 2012.
- My reasoning to own this stock was presented here and rather simple. One of the main reasons I bought this stock (and still own it today) was because of their strategy to continue to grow revenues outside North America long-term. My hunch was (and remains) that P&G’s market share will continue to rise across the developing world.
- Back in 2009, I was transitioning out of big bank mutual funds. Around that time, I gravitated to dividend investing; I started looking at various Canadian and U.S. dividend paying stocks to buy and hold. This company was one of them. Beyond the growth prospects, I found the dividend history of PG to be very appealing. At the time of my 2012 post, PG had paid dividends for 121 consecutive years since incorporation 1890.
- Back then, the quarterly dividend was $0.525 USD.
- The dividend yield was just over 3%.
- Procter & Gamble remains a consumer products behemoth. At the time of this post, PG market cap remains over $200 billion.
- In April 2018, PG increased dividends for the 62nd consecutive year.
- The PG dividend is now $0.717 USD per quarter.
- I predict another dividend hike this spring.
- The dividend yield remains a solid 3% at the time of this post.
- I continue to reinvest all dividends paid from this stock. In doing so, I earn one more share commission-free each quarter. Money that makes money can make more money – My Own Advisor.
- You can learn about dividend reinvestment plans in more detail here.
Will PG continue to pay dividends for the coming decades? Hard to say, the accurate financial future is always very cloudy. However, if I had to guess, as the manufacturer of one of the world’s largest and most diverse portfolios of consumer products available, I believe PG will continue to have a place in my portfolio for the foreseeable future.
Over time, I have and will continue to complement the income derived from this stock and a few other U.S. stocks with more units of low-cost U.S. ETFs like VYM and HDV.
By owning such ETFs, I will earn income via ETF distributions AND I’ll obtain some much needed growth and diversification via these ETFs – owning hundreds of U.S. blue chip companies without any stock selection.
Thanks for reading and stay tuned for another Then and Now in future articles.
What do you make of my decision to hold PG stock? What do you make of my decision to own more U.S. ETFs over time? Let me know in a comment!