Overview
- P&G raised its dividend by 3% in 2026, marking the 70th straight annual increase and continuing 136 years of consecutive payouts, with the annual dividend near $4.35 or about a 3% yield.
- The company generated $19.6 billion of operating cash flow in fiscal 2026 and achieved 100% adjusted free-cash-flow productivity, enabling more than $15 billion in returns to shareholders through dividends and buybacks.
- In the most recent quarter P&G reported core EPS of $1.59 and revenue of $21.2 billion, both slightly above Wall Street expectations.
- Management’s fiscal 2027 guidance calls for only low-single-digit organic sales growth of 1%–3% and core EPS growth near 0%–3%, and it flagged roughly $1 billion of after-tax cost headwinds from raw materials, energy, and transport that could constrain dividend growth.
- The investment case is for steady income and dividend compounding rather than rapid capital gains, with the payout ratio around 64%–66% and valuation at purchase being a key determinant of long‑term returns.