10 Best Blue Chip Dividend Stocks To Buy

4. The Procter & Gamble Company (NYSE:PG)

Number of Hedge Fund Holders: 69

An American multinational consumer goods company, The Procter & Gamble Company (NYSE:PG) ranks fourth on our list of the best dividend stocks. The company targets the high end of the market with its products, striving to justify this premium positioning through extensive research and development, ensuring its products provide real, tangible benefits. It spends nearly $2 billion on R&D annually, which is about 50% more than its nearest competitor and exceeds the combined R&D spending of most other competitors.

The Procter & Gamble Company (NYSE:PG) reported stable earnings in fiscal Q3 2024 as three of its divisions, including beauty, grooming, and fabric & home care showed YoY volume growth of 1%, 2%, and 1%, respectively. However, its healthcare and baby, feminine, and family care divisions experienced further volume declines. The company attributed these decreases to higher prices and a milder cold and flu season. Geography also impacted its sales, with China, The Procter & Gamble Company’s (NYSE:PG) second-largest market, still experiencing weak demand for products. In addition, the company’s CEO noted that in some regions, particularly the Middle East, retailers have reduced promotions due to ongoing geopolitical tensions.

The Procter & Gamble Company (NYSE:PG) offers a quarterly dividend of $1.0065 per share, having raised it by 7% in April this year. Through this increase, the company stretched its dividend growth streak to 68 years, which makes it one of the best blue chip dividend stocks on our list. Moreover, it has been paying regular dividends to shareholders for the past 134 years. The company’s cash position is strong, which shows that it can continue with its dividend policy by achieving its targets. In the most recent quarter, the company generated over $4 billion in operating cash flow and its adjusted free cash flow came in at $3.3 billion with a free cash flow productivity of 87%. The company maintains its forecast for adjusted free cash flow productivity at 90%. It also plans to pay over $9 billion in dividends in 2024. The stock has a dividend yield of 2.44%, as of July 7.

After more than two years, The Procter & Gamble Company (NYSE:PG) reached a new all-time high of $168 per share in June this year, surpassing its previous peak of around $165. This achievement is largely due to the company’s strong execution. The company has consistently performed well, particularly during inflationary periods when it successfully implemented substantial price increases. For instance, in fiscal 2023, the company saw organic sales growth in every quarter.

As per Insider Monkey’s database of Q1 2024, 69 hedge funds owned stakes in The Procter & Gamble Company (NYSE:PG), down slightly from 71 in the previous quarter. These stakes have a total value of over $7.2 billion.