Dividend Diplomats

About the Author Dividend Diplomats

We are the Dividend Diplomats. Two guys in their Mid-20’s in a race to gain more time now before we hit 59.5 years of age for the “normal” retirement age. You can see our goals at the linked page. The Dividend Diplomat journey began in a 1997 Toyota Celica that was struggling over the 200,000 mile mark on our way to Clearfield, PA… One individual had over $1.5K in projected dividend income and the other had more money in his pocket than projected dividends in his portfolio, and let’s just say – most people don’t hold that much cash, if you catch my drift. This is when the journey truly began, a nice 3.5 hour conversation from two CPAs in a beater of a car talking about breaking free from the chains of working as a CPA. We both were fired up, eagerly talking investing strategies and that is when the one Diplomat began his preaching on the Dividend Investing topic and how it takes the nonsense out of the ridiculous world of investing and suddenly made it very clear on the strategy to truly build a cash flowing, incoming thriving portfolio. Here is where we will describe who we are in a short brief as well as a longer story from where we have come from and where we are about to go. Thank you for visiting our site, as we update you on or purchases, stock analysis’, goal status, portfolio updates and, of course – our dividend income monthly breakdowns. Let’s all try to learn and push each other to new lengths to fully reach financial independence, here we go!

Procter & Gamble Co (PG): Dividend Analysis

It’s close to the middle of the month and the market has still been extremely volatile.  With that, I know that opportunities are out there, wonderful opportunities, especially dividend stocks that are aristocrats.  Yields are looking fairly unusually high for a few of the aristocrats that do not historically have them at these levels.  This makes us all extremely motivated and excited investors as our dividends are reinvested at better valuations and also opens up the table for buying potential!  With that, we will analyze one of the dividend aristocrats in Procter & Gamble Co (NYSE:PG).

Procter & Gamble – Tide, Dawn, Gillette, Bounty, Luvs, Mr Clean, Cascade, Charmin… the list truly goes on, as we have seen when we analyze companies (such as Disney).  It’s phenomenal the products that they offer and how the every-day consumer will more than likely purchase these products – and in abundance, as well as throughout the year aka recurring customers and revenue.  Further, PG has increased dividends for over 61 years. That is why I still will consider them as a foundation stock for a dividend growth investor and their portfolio. I did much more digging on PG’s dividend history, say 25 years worth and here is the chart:

pg 25 yrs

25 years worth of dividend growth data and yes the average dividend growth rate for the last 25 years stands at 10%; with the last 4 years coming in at 7% or less.  They have recently begun cleaning their portfolio a bit to become more focused, as evidenced by their recent agreement to sell their beauty products line to Coty.  I believe that moves like these will increase margins to bring the growth to the dividend back to the historical record they have had in the 7-10% range.

Conclusion

I like Procter & Gamble.  I like what they are doing with the company and how it pairs well with my recent purchase into JNJ, another aristocrat and foundation stock.  Further, I currently only receive (at this time) $13/quarter in dividend income from PG – as you have seen in my August Dividend Income post and I would actually like to almost double that investment, at least enough to pick up a whole share during the year with reinvestment.  The markets are taking a downturn consistently, and it may be time to gather the army of capital to deploy here soon.  Within the next upcoming weeks, if PG stays below the $69 mark, I just may pull the trigger and pick up new shares of PG.  I’ll have to get my capital ready and I’m excited to see if I can add more of this aristocrat stock to my current portfolio, which would help push me closer to my goals.

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