Procter & Gamble Has Raised Its Dividend for 70 Straight Years. Only 5 Other Companies Can Say the Same.
2026-07-17 14:17
•Daniel Sparks •The Motley Fool
•••••• • Axe Capital view
Dividend Durability Is Rare—What SA Can Learn from P&G
Procter & Gamble’s 70-year streak of dividend hikes shows a level of reliability few companies achieve, a benchmark that’s tough to match on the JSE.
Procter & Gamble’s ability to increase dividends for 70 consecutive years highlights the power of resilient, consumer staple businesses. For South African investors, the lesson isn’t about chasing US giants but rather spotting local companies with durable cash flows and disciplined capital returns. Naspers and Prosus, with their tech-driven growth and strong cash generation, look promising but lack the steady predictability of a P&G. On the JSE, banks like Standard Bank and FirstRand have shown reasonable dividend resilience, though economic cycles still weigh on payouts. Sasol’s dividend history is more volatile, stressing the risk of commodity dependence. The USD/ZAR will likely remain a significant factor for any offshore earnings translated back home. If the rand weakens, dividend-paying exporters stand to benefit. That said, assuming dividend growth continues as usual could backfire if local economic shocks hit capital-intensive companies harder than their US consumer staples counterparts. this is just my opinion and not financial advice
I’d watch Standard Bank and FirstRand for steady dividend income but remain cautious on commodity-linked payers like Sasol. Hedging USD/ZAR exposure makes sense given currency swings.
- Standard Bank
- FirstRand
- USD/ZAR
- local economic downturn affecting bank earnings
- rand volatility impacting offshore earnings translation
7/10
Procter & Gamble raised its quarterly dividend by 3% in April, marking its 70th consecutive year of dividend increases and 136 years of continuous dividend payments since 1890. With a current yield of 2.9%, a payout ratio of 63%, and plans to distribute $10 billion in dividends in fiscal 2026, P&G demonstrates the durability of its consumer staples business. The stock trades at 21x earnings, offering a reasonable valuation for income-focused investors seeking dependable dividend growth.
This article was originally published by The Motley Fool and has been adapted here for Axe Capital Trading News.
Publisher: The Motley Fool
Author: Daniel Sparks
Categories: Rates, Equities, Earnings, Capital Returns, Consumer, Retail
Tickers: PG
Sentiment: Positive - P&G demonstrates exceptional dividend reliability with 70 consecutive years of increases and 136 years of continuous payments. The company maintains strong organic sales growth (3% YoY), a well-covered payout ratio (63%), and a reasonable valuation (21x earnings). The 2.9% yield combined with consistent dividend growth makes it attractive for income investors seeking stability and durability through economic cycles.
Keywords: dividend increase, dividend aristocrat, consumer staples, dividend yield, income investing, dividend growth, share repurchase
Insights:
- PG: Positive: P&G demonstrates exceptional dividend reliability with 70 consecutive years of increases and 136 years of continuous payments. The company maintains strong organic sales growth (3% YoY), a well-covered payout ratio (63%), and a reasonable valuation (21x earnings). The 2.9% yield combined with consistent dividend growth makes it attractive for income investors seeking stability and durability through economic cycles.
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