ii view: P&G touts 70 years of consecutive dividend hikes

Third-quarter results to 31 March

• Net sales up 7% to $21.24 billion
• Adjusted earnings up 6% to $1.63 per share
• Quarterly dividend up 3% from Q2 to $1.0885 per share

Guidance:

• Continues to expect full-year sales growth of between 1% to up 5%
• Continues to expect adjusted core earnings per share growth of between 1% to up 6%

Chief executive Shailesh Jejurikar said: “We delivered a solid acceleration in top-line results in our fiscal third quarter, with broad-based growth across product categories and regions.” 

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ii round-up:

Procter & Gamble Co (NYSE:PG) today detailed sales and earnings beating Wall Street hopes with the maker of consumer goods touting a 70th consecutive annual increase in the dividend payment.

Third-quarter revenues to late March up 7% to $21.24 billion (£15.7 billion) pushed adjusted earnings up 6% to $1.63 per share. Analysts had forecast outcomes of $20.5 and $1.56 per share. A previously announced quarterly dividend of $1.0885 per share, payable to eligible shareholders on 15 May, is up 3% from the prior quarter.

Shares in the Dow Jones company rose 3% in US trading having come into these latest results up close to 2% so far in 2026 and just below the gain for the Dow index year-to-date. Shares in European rival Unilever (LSE:ULVR) are down 12% over that time. 

PG sells across five product categories including Beauty, Grooming, and Healthcare. Group brand names include Pantene, Gillette, and Seven Seas vitamins. 

Organic sales, which exclude the impacts of foreign exchange, acquisitions and divestitures, rose 3% from a year ago, pushed by a 2% improvement in volumes and a 1% increase in product prices.

Organic sales gains were made across all product categories, led by a gain of 7% for Beauty and tailed by a 1% improvement for Grooming. 

P&G maintained sales and earnings forecasts for the full year, with sales and earnings gains of up to 5% and 6% forecast respectively. 

Alongside the dividend, shareholder returns included $600 million of share repurchases during the period. Fourth quarter and full-year results are likely to be announced mid to late July.    

ii view:

P&G today employs more than 105,000 people across 70 countries. Other group brands include Ariel, Head & Shoulders, Fairy, Crest toothpaste and Always. Fabric and Home Care generated most sales during its last financial year to late June at 36%. That was followed by Baby, Feminine & Family Care at 24%, Beauty at 18%, Healthcare 14%, and Grooming 8%.  

Geographically, North America makes most sales at 52%. Then comes Europe at 22%, with Asia Pacific, China and Latin America all at 7% each, and India, the Middle East and Africa the balance of 5%. Global competitors include Colgate-Palmolive Co (NYSE:CL) and L'Oreal SA (EURONEXT:OR). 

For investors, war-inflated energy prices pressuring consumer disposable incomes may now push group customers towards cheaper supermarket own-brand or even online alternatives such those available from Amazon. Volatility in raw material costs given ongoing global trade and geopolitical tensions cannot be ignored. Sizeable sales overseas leave currency headwinds a potential feature, while the impact of product chemicals and packaging on the environment continues to warrant consideration.

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More favourably, P&G’s extensive list of household goods feature regularly in shoppers’ baskets across the globe. Wide geographical diversity should help positives for one region counter challenges for another. Management initiatives to sharpen productivity and reduce costs are ongoing, while 136 consecutive years of paying a dividend now leave the shares sat on an estimated future dividend yield of close to 3%.

On balance, and despite ongoing risks, this giant of the consumer goods world appears to remain worthy of its place in many already diversified investor portfolios.   

Positives: 

• Product and geographical diversity
• Progressive dividend policy

Negatives:

• Uncertain economic outlook
• Currency movements can hinder performance

The average rating of stock market analysts:

Buy