PG

A Staple Bellwether, Priced a Touch Below Usual

Procter & Gamble is about as close to a dividend bedrock as the market offers. It has raised its payout for 67 straight years, funded from about 64% of earnings. So the notable thing today is not the streak, it is the yield. At 2.96%, P&G pays 18% more than its own five-year average of 2.50%. On a business this steady, an above-average yield is uncommon, and our screen reads it as a modest discount, tagging the stock Undervalued.

What 67 Years and a 64% Payout Add Up To

The dividend is well anchored, though not by an unusual cushion. P&G pays out 64.4% of earnings, six points above the 58.4% median for Dividend Kings — ordinary coverage for this tier, and the kind of reading The Payout Ratio is built for, leaving the raises dependent on earnings growth rather than on spare capacity. Six and a half decades of increases, paired with a payout that is neither stingy nor stretched, is a sturdy combination; it is just not a fortress one.

Unlike the Kings paying out nearly all their earnings, P&G still keeps about 36 cents of every dollar, so its dividend can grow with profits rather than being capped by them.

The Breadth Behind the Dividend

The consistency traces back to the product shelf. P&G sells everyday household and personal-care brands that people buy in good economies and bad, spread across dozens of categories so no single product decides the outcome. That diversification smooths cash flow, and steady cash flow is what a 67-year dividend requires. The dividend's reliability is a direct reflection of how ordinary and repeat-purchase the underlying products are.

Why a Small Discount Is Worth Noting

A stock like P&G rarely trades cheap, so even a mild discount stands out. The 2.96% yield running above its own history is not a sign of trouble, the 67-year streak and covered payout rule that out. It is simply the market pricing the shares a little lower than their usual level. For an income investor who wants a staple dividend with an unusually long record, the value here is not a high yield, it is a slightly better entry to that record than the stock normally allows. The screener shows where P&G's yield sits against the rest of the Dividend Kings on any given day.

The Read

So P&G offers reliability first and a small bonus second. The 67-year streak and 64.4% payout describe one of the steadiest dividends in the market, and the 2.96% yield sitting 18% above its norm means an investor is picking it up at a modest discount rather than a premium. There is no drama here, and that is the point. P&G is a holding for steady, growing income, and the current price makes that steadiness slightly cheaper than usual.

The dividend record and latest figures are in the company's filings on SEC EDGAR. How we group stocks by history tier and assign a current dividend profile is documented on our methodology page.

Disclaimer: This is informational only and not financial advice. Figures reflect the site snapshot dated 2026-08-13 and move with the market. Investing carries risk of loss, including loss of principal.