Procter & Gamble (NYSE:PG) is the world’s largest consumer product manufacturer. Shares have climbed 12.3% in 2019 as of close on April 25. The stock has soared 42.8% from the prior year.
Procter & Gamble is part of an elite group of U.S. equities that has achieved at least 50 consecutive years of dividend growth. It also boasts a dividend yield that is on the high end compared to its peers in this coveted group. The company released its fiscal 2019 third-quarter results on April 23.
Organic sales experienced 5% growth in Q3 fiscal 2019. The best performing segments were Beauty products, which reported 9% growth in the quarter, and Fabric & Home Care, which experienced a 7% rise in organic sales.
Procter & Gamble maintained its full-year guidance but reiterated that it would hit the bottom line of its original forecast. Earnings have been negatively impacted by an after-tax headwind from foreign exchange and higher commodity and transportation costs in fiscal 2019.
Earlier in April, Procter & Gamble announced a 4% dividend increase to $0.7459 per share. This represents a 2.8% yield. The bump up also represented its 63rd consecutive year of dividend growth.
Income investors will be happy with the company, but value investors have reasons for concern. The stock is trading at the high end of its 52-week range after a lukewarm earnings release. The report pushed the stock outside of overbought territory, but it is still pricey in late April.
