Procter & Gamble has built an impressive track record of dividends.
Procter & Gamble has built an impressive track record of dividends.
The Nasdaq-100 index is known for including large technology companies like Apple (AAPL -0.15%) and Nvidia (NVDA +1.38%). These growth companies have provided strong gains over the years. However, its stocks tend to be more volatile.
For investors seeking less volatile price swings with reliable dividend income, look no further than Procter & Gamble (PG -1.04%). The shares have a dividend yield of 2.8%, more than five times the Nasdaq-100's 0.5%. It's also nearly three times higher than the S&P 500 index's 1% yield.
Here's a closer look at the company to see why dividend investors should strongly consider Procter & Gamble's shares.
Procter & Gamble doesn't appear to operate an exciting business. It sells products like shampoos, razors, deodorants, toothpastes, detergents, and diapers. However, it has popular brands with high market shares, such as Head & Shoulders, Tide, Gillette, and Pampers.
Selling these types of products also makes the company's results resilient to economic cycles. That's because people need them, no matter what's going on with their personal financial situation.
In fact, you'd be hard-pressed to find a company with as impressive a dividend history as Procter & Gamble. It has made payments for 136 years and raised them for 70 straight years. That makes the company a Dividend King, a group of companies that have increased dividends for at least 50 straight years.
Most recently, the board of directors approved a solid 3% hike to April's payment. Procter & Gamble currently pays a $ 1.0885-per-share quarterly dividend.
Streak set to continue
Of course, an impressive dividend history doesn't mean much if a company can't afford to continue paying and raising payments. Fortunately, Procter & Gamble's ability to pay dividends isn't in question.
Averytin News Financial update.