Dividends4Life: Dividend Investors Should Love Procter & Gamble

Dividend Investors Should Love Procter & Gamble

Posted by D4L | Wednesday, April 24, 2013 | | 0 comments »

Is there any reason why an income investor would want Procter & Gamble as part of his or her portfolio? This company is the very definition of stability, both in its business model and its payout. But if you’re not familiar with P&G — and you should be — here’s a closer look at three big reasons to love this dividend stalwart:

1. Branding Power - The beauty of big brand recognition/loyalty: Companies that have it are better prepared to weather economic slowdowns.
2. Management - While revenues have ticked upward, profits have declined in the same period as margins slimmed. P&G management has responded to this by announcing it will lay off approximately 5,700 employees by the end of this year and keeping an active eye on other expenses.
3. Rewarding Shareholders - I’ve already mentioned the 56 years of consecutive dividend increases, but also keep in mind that P&G has an active share buyback plan in place. Early last year, the company announced it would repurchase $4 billion in stock, and has since upped that figure to $6 billion.

Source: InvestorPlace

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