Dividend Kings and Aristocrats List: 10 Biggest Stocks

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

Market Cap as of January 28: $331.6 billion 

The Procter & Gamble Company (NYSE:PG) is one of the world’s largest manufacturers of consumer and household products. In fiscal Q2 2023, the company reported revenue of $20.8 billion, which beat Street estimates by $50 million. Its operating cash flow was $3.6 billion and its free cash flow productivity was 72%. Moreover, it returned $2.2 billion to shareholders in dividends, which makes it one of the best dividend stocks on our list.

In January, Stifel raised its price target on The Procter & Gamble Company (NYSE:PG) to $147 with a Hold rating on the shares, highlighting the company’s recent quarterly earnings.

On January 10, The Procter & Gamble Company (NYSE:PG) declared a quarterly dividend of $0.9133 per share, which fell in line with its previous dividend. The company has been boosting its dividends consistently for the past 66 years, which makes it one of the best dividend stocks on our list.

As of the close of Q3 2022, 69 hedge funds tracked by Insider Monkey reported owning stakes in The Procter & Gamble Company (NYSE:PG), down from 71 in the previous quarter. The collective value of these stakes is over $4.08 billion.

Rowan Street Capital mentioned The Procter & Gamble Company (NYSE:PG) in its Q4 2022 investor letter. Here is what the firm has to say:

“Let’s look at The Procter & Gamble Company (NYSE:PG). Dividend yield is 2.4%. Earnings are forecasted to grow at 5.9%, and its current earnings multiple is at 25x. Now, lets say over the next 3-5 years the market loses interest in the “safe”, mature companies that grow at anemic rates and gets an appetite for growth again. It’s very unlikely that Mr. Market will be paying 25x for 5.9% earnings growth. Lets assume that multiple declines to the market average of 18x — that would be ~6.9% drag per year on the total expected return over next 3-5 years. If we get 2.4% (dividend) + 5.9% (earnings growth) – 6.9% (decrease in earnings multiple) = 1.4% (annual return we can expect on average from this stock).”