Any company that has provided investors with dividend distributions for more than 100 years should certainly hold merit in the eyes of long-term income oriented investors.
In that regard, the dividend yield of Procter & Gamble Company (NYSE:PG) at 3.2% is one I would encourage income oriented investors consider at current levels.
Earlier this year, P&G offered a dividend yield higher than 4% but has since seen a run up in the company’s share price for a number of reasons.
The company has continued to right-size its business and focus its efforts on increasing sales in brand categories which are likely to continue to see growth in the long-run, consolidating the company’s portfolio of products to those which offer investors the highest rate of return.
With retail trends shifting, P&G will also be forced to think about how the company will tackle distribution channel change over time, but for the time being, remains an industry leader in consumer packaged goods with a very safe dividend distribution and a relatively wide moat compared to its competition.
For long-term fundamental investors focused on security, safety, and yield, P&G checks all three boxes and is likely to continue to do so in the decades to come.
The strong relationships P&G has built with retailers all over the world is an asset which cannot be found on the company’s balance sheet but is one which underpins the company’s strong dividend yield and continual dividend increases.
Invest wisely, my friends.
