PG -1.02% NVDA +3.91% Explore stocks on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
It might be difficult for some of us, but think about the 1950s for a moment. Specifically, the year 1955. What's significant about that year?
It's the year in which Procter & Gamble (NYSE: PG) started raising its dividend, a streak that remains alive and well today at 71 years. Not only does that make the consumer staples Goliath a Dividend King, or one of the corporations with a payout-increase streak of at least 50 years, it also means the Tide maker is tied for the third-largest dividend-increase streak among U.S. companies.
Missed AI's "Act 1"? Act 2 Could Be 16x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we're only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue »
Think about that. Procter & Gamble's run of consecutive dividend increases is nearly as old as color television, predates the Moon landing by 14 years, and began nearly 20 years before women could get credit cards without a male co-signer. In other words, Procter & Gamble's devotion to steady dividend hikes puts the "long" in "longevity."
Call it certainty, consistency, or dependability, but those are very much the reasons why so many investors embrace Dividend Kings, including Procter & Gamble. Market participants certainly love all-weather durability, which the Febreze maker has.
Think about P&G's dividend reliability in the context of recessions. The experts at the National Bureau of Economic Research (NBER) say there have been 10 official recessions since 1955. Some, such as the COVID-19 economic contraction of 2020, were brief. Others, including the 1981-82 recession and the global financial crisis earlier this century, lasted well over a year.
Through all of that, good times and bad, Procter & Gamble's dividend ticked higher every year. That's the type of dependability that dividend growth investors should prioritize. The consumer defensive label isn't a guarantee against future negative action. Some of the sector's previously storied names have cut payouts.
However, Procter & Gamble's dividend is considered safe, and its payout ratio of 67.8% of free cash flow isn't alarmingly high, particularly when accounting for one of the highest levels of free cash flow in the household products industry. Those are among the reasons why I'm bullish on P&G heading into 2027, even though the stock is up 16% year to date.
Indeed, P&G stock is hot this year, but it can keep the good times rolling in 2027, particularly if jitters about the artificial intelligence (AI) trade linger. The U.S. Election Day rebuke of data centers in some states may be a sign that some investors will lean into defensive stocks heading into the new year.
Speaking of Election Day, congressional power changed hands. That's not necessarily an alarm bell for investors, but uncertainty about how legislative agendas will shape up could compel market participants to gravitate toward lower-volatility names, such as P&G.
There's talk that the new congressional majority could push through new spending initiatives, potentially stoking inflation. Hopefully, inflation won't rise, but if it does, Procter & Gamble's compound annual dividend growth rate (CAGR) of 4.9% over the past 10 years should be enough to keep pace with or beat inflation.
Before you buy stock in Procter & Gamble, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Procter & Gamble wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $341,966!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,146,819!*
Now, it's worth noting Stock Advisor's total average return is 852% — a market-crushing outperformance compared to 203% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of November 8, 2026.
Todd Shriber has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
This Dividend King Has Raised Its Payout Through Every Recession Since the 1950s. I'm Buying Before the End of the Year. was originally published by The Motley Fool
