While the broader economy is always battling some level of uncertainty, it seems investors are more upbeat. There is a lot to worry about, such as changes in trade policies, geopolitical tensions, inflationary pressures, and the impact of artificial intelligence on the labor market.
At such times, investors may panic because they feel the need to predict the future correctly in order to put money to work. Instead, consider protecting the downside. This is where security can be found in solid defensive companies that provide a steady flow of income, whether we are in a recession or experiencing a boom.
it consumer staple stocks This may be just what you need right now.
Image Source: Getty Images.
There seems to be no stopping these dividend payments
You’d be hard-pressed to find a business with a track record like this Procter & Gamble (PG +2.40%). The company, which sells some of your favorite household items from laundry detergent and shampoo to diapers and paper towels, is scheduled to pay a quarterly dividend of about $1.09 in May. This supports an extraordinary streak. The company has paid dividends for 136 consecutive years.
And these payments have increased for 70 consecutive years. This it “dividend king,” an exclusive club for businesses with at least 50 years of consistent dividend growth.
This kind of consistency is unheard of. But it points to the durability and staying power of Procter & Gamble. Its products are desirable in good and bad economic times, which significantly reduces the risk for investors.
Think about the adversity this business has faced throughout its history. There were wars, economic crises, and even a global pandemic. Procter & Gamble never deviated from its path, making returning capital to its shareholders a strategic priority.
today’s change
(2.40%) $3.47
current price
$148.09
key data points
market cap
$344B
day limit
$147.62 -$152.08
52wk range
$137.62 -$170.99
volume
978K
average volume
11m
gross margin
50.88%
dividend yield
2.87%
Trading in market performance for less risk
S&P 500 The index’s 10-year total return (as of April 23) is 305%, more than double the 130% total return generated by Procter & Gamble. This isn’t surprising, given that the company’s quarterly net income has grown only 34% over the past decade. This is an extremely mature business, so don’t expect high growth.
According to consensus estimates from sell-side analysts, Procter & Gamble’s revenue is expected to grow at a compound annual rate of 3% between fiscal 2025 and fiscal 2028.
Although investors will not outperform the market, they will benefit from minimal drawdown. For example, shareholders do not have to worry about the threat of technological disruption, which could have a greater impact on other parts of the economy.
The defensive nature of Procter & Gamble mitigates any fears that may be more prominent today with the advent of AI.