I wasn’t in a rush to write this, because the increases were kind of blah.
Procter & Gamble (PG) increased their dividend by 1% (if you round up) to $0.6695 per share payable on May 16. They quarterly dividend for the past year was $0.6629 per quarter, prior to that $0.6436. You can check out the history for yourself going back to 1990 right here. The company releases their earnings on 4/26. Just like most large multinational companies, they’ll come out and talk about exchange rates hurting earnings. Eventually this will change. What ticks me off about this particular dividend increase, is that the stock has done jack squat for a few years now. They’ve been trying to lean up business lines and divesting some of their brands to “have a core focus” but I ain’t seeing the stock price go up. With that said I am setting my alarm for Tuesday morning. This earnings season so far has been feast or famine. With the resent run in the market, largely driven by the Fed kicking the can, companies are desperately needing to hit their Revenue and EPS numbers. I personally wouldn’t add to PG on Monday, but if the stock drops Tuesday after they release their earnings report, I’ll be adding to my position. I’m thinking since companies like KO and KMB have recently had pull backs after their earnings report, PG should be on the same boat. So for me, it’s a wait for the earnings report, and buy a dip.
PG dividend facts: This marks 60 consecutive years of dividend increases. This year is the 126th year of PG paying dividends to shareholders. Current yield of 3.31% based on 4/22 close, so at least you get paid pretty good to wait. For the last decade, PG dividend has increased at an average annualized rate of 8.003% per year.
Colgate Palmolive Co (CL) gave their token $0.01 dividend increase of 2.63%, bringing the new quarterly dividend to $0.39 per share beginning May 16. This company is good for about a 1-2 cent increase per year, wouldn’t normally expect anything more. CL has increased their dividend for 53 straight years and paid a dividend ever since 1895. Over the last decade, CL has grown their dividend at a rate of 9.31% per year. CL currently sports a 2.26% dividend yield. CL report 4/28. Same story as above for PG. I personally would wait for the earnings report, and buy a dip. Exchange rates/strong dollar will be the hot buzz word for companies earnings reports yet again.
So not the best news as far as dividend increases are concerned, especially compared to my last few reports, but a dividend increase is better than a cut.Follow me on the social medias: