Friday, April 17, 2015

PG raises dividend 3% --- New Yield is 3.21% (YAWN)


Today PG announced that it is increasing its dividend 3% from $0.6436 to $0.6629 per share. This is the 59th consecutive year of dividend increases.

The record date is April 27th and the pay date is May 15th.

Since I currently own 124.35 shares my yearly dividends will increase by $9.60.

A 3% yield and a 3% raise...come on???  Well at least they kept the yearly streak alive. I must admit that I am disappointed in the decision, but I guess PG is being cautious right now. Quite honestly this reminds me of GE's paltry raise. Maybe I should manage my expectations better. I would expect something like this out of AT&T, but Procter?? Hmmmm....Better luck next year, I guess.

The next batters up to the plate are JNJ, XOM, CVX, IBM ,and APU. Hopefully they have better news than Procter.

DEFY MEDIOCRITY
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17 comments:

  1. Captain DividendApril 17, 2015 at 3:57 PM

    That is a bit of a letdown but you may be right about them being cautious here. I'm hoping stocks like JNJ and PEP can make up for it. The oil majors will be particularly interesting to see how large their raises are.

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    1. My Dividend PipelineApril 17, 2015 at 5:33 PM

      Captain,

      XOM and CVX could be very interesting indeed. I am hoping for at least the same 3% Procter gave us.

      MDP

      Delete
  2. TawcanApril 17, 2015 at 3:59 PM

    I'm happy about the raise regardless... you're right though the increase is a bit lower than usual.

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    1. My Dividend PipelineApril 17, 2015 at 5:34 PM

      Tawcan,

      A raise is a raise I guess. I would have thought it would be more in line with Coke's raise, not AT&T's. Of course if business conditions improve in the future the higher raises will come once more.

      MDP

      Delete
  3. Div4sonApril 17, 2015 at 4:17 PM

    MDP, I agree that the number is low, but it is still a raise - better than inflation - and also better than my pay raise - so I can't complain.
    D4S

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    1. My Dividend PipelineApril 17, 2015 at 5:36 PM

      Div4son,

      I am a little disappointed, but when business conditions improve I'm sure the more impressive raises will follow.

      MDP

      Delete
  4. ADDApril 17, 2015 at 6:26 PM

    I too am disappointed but money is money and I'm getting more of it for not doing anything. My stake in PG is relatively small so the poor raise won't affect the average dividend growth rate of my portfolio too much.

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    1. My Dividend PipelineApril 18, 2015 at 8:16 AM

      ADD,

      I'm happy about getting the raise, but just disappointed in the amount. This is a raise that I would expect from a REIT or a utility. Hopefully Procter can improve its business and the better raises will resume in the future.

      MDP

      Delete
  5. Dividend DiplomatsApril 17, 2015 at 8:56 PM

    MDP,

    I was pissed! I know Bert and I were predicting somewhere in the 6-7% range, but 3%... ouch. COLA? Kidding, kidding. Wonder what that payout is looking like at Q1 then. This is an interesting raise. IBM is on deck next for me, which given this news - concerning a bit, damn!

    -Lanny

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    1. My Dividend PipelineApril 18, 2015 at 8:18 AM

      Lanny,

      There is no way to spin it. This was rather unimpressive. This is just a current snapshot of the company and things can improve going forward. I am looking forward to see how the other companies do this month. Hopefully the oil majors give raises and IBM is in the double digits.

      MDP

      Delete
  6. Dividend MantraApril 17, 2015 at 9:43 PM

    MDP,

    I'm not surprised about this at all. They haven't really grown in many years, so at some point the dividend just had to stop growing faster than the company. The payout ratio is very high right now (it's almost doubled over the last decade), so the raises will likely continue to be low until they get things going again. Hopefully, they can get moving in the right direction again at some point in the near future.

    But I'll take the raise, regardless. More money is more money!

    Cheers.

    ReplyDelete
    Replies
    1. My Dividend PipelineApril 18, 2015 at 8:24 AM

      DM,

      Agreed. I guess I come to expect the normal 6-7% raises that are customary with this company. PG gave us what we could expect from T or SO. Next year should be better. They have too many world class brands to not make a great rebound.

      MDP

      Delete
    2. Dividend DiplomatsApril 19, 2015 at 6:24 PM

      MDP,

      Agreed. Maybe T will have a change of heart and do a 6-7% increase this year... joking haha

      -Lanny

      Delete
  7. Dividend Growth JourneyApril 18, 2015 at 12:36 PM

    I am hoping that PG can turn it around in 1-2 years after they shed their brands and start focusing on their core ones. The stock has been on a consistent down trend for the last few months, but still expensive. Looking forward to the results next week and if the stock drops further to 70s, I would like to add more. At a P/E of over 21 right now, the stock is not a buy.

    ReplyDelete
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    1. My Dividend PipelineApril 20, 2015 at 9:11 AM

      DGJ,

      The stock is priced pretty high, but considering the brands and products, the potential earning power is HUGE! Once the train gets back on the tracks, this 800 lb gorilla should be in good shape.

      MDP

      Delete
  8. AnonymousApril 18, 2015 at 8:38 PM

    Just curious, what is your total investment in order to generate this amazing amount of dividend income?

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    Replies
    1. My Dividend PipelineApril 20, 2015 at 9:14 AM

      Anonymous,

      Right now my taxable account is hovering around $370k with a 4.2% yield.

      MDP

      Delete

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