The Procter & Gamble Company (NYSE:PG) is a true Dividend Rock Star. Its yield of 3.45% makes it one of the market’s top dividend payer. In the past ten years, Procter & Gamble has also grown its dividend from 1.4 to 2.76. Below, I have outlined more attractive dividend aspects for Procter & Gamble for income investors who may be interested in new dividend stocks for their portfolio. Check out our latest analysis for Procter & Gamble

What Is A Dividend Rock Star?

It is a stock that pays a stable and consistent dividend, having done so reliably for the past decade with the expectation of this continuing into the future. More specifically: It is paying an annual yield above 75% of dividend payers It has paid dividend every year without dramatically reducing payout in the past Its has increased its dividend per share amount over the past It is able to pay the current rate of dividends from its earnings It is able to continue to payout at the current rate in the future

High Yield And Dependable

Procter & Gamble’s yield sits at 3.45%, which is high for Household Products stocks. But the real reason Procter & Gamble stands out is because it has a high chance of being able to continue to pay dividend at this level for years to come, something that is quite desirable if you are looking to create a portfolio that generates a steady stream of income.

If dividend is a key criteria in your investment consideration, then you need to make sure the dividend stock you’re eyeing out is reliable in its payments. In the case of PG it has increased its DPS from $1.4 to $2.76 in the past 10 years. During this period it has not missed a payment, as one would expect for a company increasing its dividend. This is an impressive feat, which makes PG a true dividend rockstar. The current trailing twelve-month payout ratio for the stock is 71.02%, meaning the dividend is sufficiently covered by earnings. In the near future, analysts are predicting a payout ratio of 65.48%, leading to a dividend yield of around 3.73%. Moreover, EPS should increase to $4.21.

Next Steps:

Procter & Gamble’s strong dividend attributes make it, without a doubt, a stock dividend investors should be considering for their portfolios. However, given this is purely a dividend analysis, you should always research extensively before deciding whether or not a stock is an appropriate investment for you. I always recommend analysing the company’s fundamentals and underlying business before making an investment decision. I’ve put together three relevant aspects you should further examine:

• 1. Future Outlook: What are well-informed industry analysts predicting for PG’s future growth? Take a look at our free research report of analyst consensus for PG’s outlook.

• 2. Valuation: What is PG worth today? Even if the stock is a cash cow, it’s not worth an infinite price. The intrinsic value infographic in our free research report helps visualize whether PG is currently mispriced by the market.

• 3. Other Dividend Rockstars: Are there strong dividend payers with better fundamentals out there? Check out our free list of these great stocks here.

To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned.