Procter & Gamble's 70-year dividend streak meets a nearly 20% share price retreat
NEW YORK, Aug. 16. A 70-year streak of consecutive annual dividend increases at Procter & Gamble (NYSE: PG) is the longest in consumer staples, with shares now trading nearly 20% below their 2024 high and yielding 2.9%. Coca-Cola (NYSE: KO), at 64 years, holds the next-longest streak in the sector.
Key takeaways
- Procter & Gamble has raised its dividend for 70 consecutive years, the longest streak in the consumer staples sector, followed by Coca-Cola at 64 years.
- P&G shares are trading nearly 20% below their 2024 high and yield 2.9%, a yield that reflects the price decline.
- Rising inflation has caused consumers to pull back on spending, pushing the consumer staples sector out of favor.
- The analysis cites P&G's brand portfolio—including Bounty, Tide, Charmin, Always, Gillette, Dawn, Old Spice, Crest, and Ivory—built over more than 100 years, as its primary competitive advantage.
- P&G recently agreed to acquire Thorne, a maker of creatine, whey, and electrolyte drink products, to expand into the wellness category.
NEW YORK, Aug. 16. A 70-year streak of consecutive annual dividend increases at Procter & Gamble (NYSE: PG) is the longest in consumer staples, with shares now trading nearly 20% below their 2024 high and yielding 2.9%. Coca-Cola (NYSE: KO), at 64 years, holds the next-longest streak in the sector.
The yield of 2.9% reflects the share price decline. Rising inflation has led consumers to pull back on spending, the analysis said, and the consumer staples sector has moved out of favor as a result.
P&G's brand portfolio is the foundation the analysis cites first. Products including Bounty, Tide, Charmin, Always, Gillette, Dawn, Old Spice, Crest, and Ivory operate at the high end of their respective categories. Several hold category leadership positions, making P&G a key partner for its retail customers, according to the analysis, as those retailers rely on the brands to draw shoppers. Building the current portfolio took more than 100 years, and the analysis describes recreating it as effectively impossible.
Distribution, acquisitions, and R&D
Scale gives P&G a distribution network that can reliably supply retail partners, marketing resources to support those partners with advertising dollars, and a balance sheet to acquire smaller brands as consumer preferences shift. The company recently agreed to buy Thorne, a maker of creatine, whey, and electrolyte drink products, to expand into the wellness category, the analysis reported. Getting to P&G's level of scale takes decades, the analysis notes, which limits the speed at which newer entrants can close the gap.
Research and development is the third element the analysis separates from brand ownership and distribution. The ability to charge premium prices in consumer staples depends in part on products that deliver real consumer benefits, and P&G's R&D platform has supported that pricing approach over the company's history. Innovation, the analysis argues, powers the product claims that justify higher price points.
Reuben Gregg Brewer, who holds a position in Procter & Gamble, authored the analysis. The Motley Fool disclosed no position in any of the stocks mentioned.