This week Procter & Gamble (PG) announced a 1.0% increase in its quarterly dividend for common stockholders. The dividend is raised from $0.6629 to $0.6695. This dividend increase marks the 60th consecutive year that the Company has increased its dividend, demonstrating its commitment to – and extending its long-term track record of – returning cash to shareholders.
The Company expects total dividend payments to shareholders of approximately $7.5 billion in fiscal year 2016, bringing total dividends paid over the last decade to nearly $60 billion. P&G has been paying a dividend for 126 consecutive years since its incorporation in 1890.
The dividend pay date is May 16, 2016 to shareholders of record on April 15, 2016 (ex dividend April 14, 2016).
P&G noted that the amount of the dividend increase reflects the cash impacts from streamlining and strengthening the business unit portfolio and the Company’s plans to increase investments in the business to achieve balanced top- and bottom-line growth. With this dividend increase, P&G’s payout ratio of dividends to net earnings is expected to be over 70% for the current fiscal year.
The new dividend amount represents an annualized dividend amount of $2.678 per share, up from $2.6516. The dividend yield on current price is 3.22 %.
My Vrijheid Fonds consist of 38 shares of Procter & Gamble, my annual dividends will increase by $0.85 after taxes. My projected annual total amount from my shares of PG will be $86.50 after taxes.
It is a small raise, but it is welcome!