Dividend increase Proctor & Gamble

Dividend increase Proctor & Gamble

At the 11th of April the board of Proctor & Gamble decided to increase the quarterly dividend from $ 0,6695 to $ 0,6896 per quarter. This means an increase of $ 0,0804 per share per year which translates to a 3% increase. The dividend is paid on May the 15th 2017 to shareholders of record onĀ April the 21st 2017. This is the 61st consecutive yearly increase in the dividend.

 

The Pursuit

Since I have 14 shares this increase means that my yearly dividend for Proctor & Gamble is now $ 38,62. Up from $ 37,49 or a $ 1,13 increase in yearly dividends. After taxes I will receive $ 32,83 per year from the company.

This increase means Proctor & Gamble currently yields 3,03% and my yield on cost rises to 3,58%.

 

Conclusion

I love this dividend increase even more than I love other, bigger dividend increases. P&G is a company that has gone through a big restructuring during the last couple of years. They had to do this because the growth was not there anymore. Now they are focussing on less, but more profit generating brands. Last year, the company increased the dividend with 1% only. This was probably mostly to keep the dividend growth streak alive. The fact that the dividend growth now turns out to be 3% signals a very positive signal by the management team of P&G. The restructuring is bearing fruits and the company has trust that this will continue into the near future. I like that!

Do you own Proctor & Gamble? What do you think of the company and this dividend increase? Don’t hesitate to comment below!

 

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