The Best Dividend Stock for 2027 and Beyond: Procter & Gamble
The 3% dividend yield doesn't tell the whole story.
Overview
Procter & Gamble Co.'s (NYSE: PG) annual dividend growth rate of 4% to 6% over the last two decades, coupled with its 3% dividend yield, gives income-seeking investors an unusually solid combination of current income and long-term growth, in my view, for 2027 and beyond. Home to globally well-known household brands, the consumer-defensive giant has increased dividends for 70 consecutive years, backed by its ever-growing recurring cash flows.
A growing dividend supported by a business that generates billions of dollars in cash every year is extremely important to income-seeking investors. For context, in fiscal 2026, which ended June 30, P&G paid out $10.2 billion in dividends on operating cash flow of $19.6 billion and net income of $16 billion.
Details
What I see in P&G, one of the best income-generating stocks to own today, is its built-in inflation-defense mechanism. In a more volatile stock market, expected absolute stock returns decline. And as global bond yields rise, markets will be choppier in the foreseeable future.
Source
Originally published at www.fool.com.