Tuesday, April 14, 2009

Bucking The Trend, Procter & Gamble Boosts Its Dividend

. Tuesday, April 14, 2009

By stockOzone team

Consumer giant Procter & Gamble Co. (NYSE: PG) said late Tuesday its board increased the quarterly dividend by 10% to 44 cents from 40 cents.

The dividend is payable on or after May 15 to shareholders of record at the close of business on April 24.

P&G said in a release, "The company has been paying dividends without interruption since incorporation in 1890. This is the 53rd consecutive fiscal year that P&G has increased dividends."

Procter & Gamble's latest announcement came as a fresh whiff of hope for those investors who depend upon dividends for a steady source of income.For many investors, dividends as not just a steady source of income but also as an indicator of a company's overall health. Though consumer-product makers have suffered a drop in the demand, they still continue to generate strong cash flows as they sell daily necessities. In past few months, most of the companies have either or slashed or suspended their dividend payout in order to conserve cash and ensure financial flexibility.

According to Standard & Poor's, only 26 companies have raised their dividends for at least 36 years in a row. The ratings firm said last week that a record 367 firms cut dividends by $77 billion in the first quarter, the worst showing for payouts since 1955, when S&P first began compiling data. The first quarter also set a record for the fewest number of companies, 283, raising their dividends.

Disclosure: Author does not own any of the stocks discussed here.

Bookmark and Share


Post a Comment

Visit blogadda.com to discover Indian blogs