PG's Paltry Dividend Raise

[Kerim]

Nobody wants to vent about PG's paltry 1 percent dividend raise?

I know it can be seen as a prudent move, but sheesh, even so it is disappointing.

[EricL]

I don't own it, but the raise didn't surprise me much. It was one of the eight I highlighted for lower growth in a recent article.

In short, PG has typically produced a payout ratio of around 40-50% during the last 15 years but that has slowly crept up in recent years and now stands at 74% based on 2016 earnings estimates and the newly declared dividend.

Unless they can find a way to grow profits or the dollar reverses and weakens materially, this is the new norm.

[Rasec]

(EricL, loved that article btw!)

I think it's better to have a responsible 1% raise than an irresponsible "KMIalike" raise which they won't be able to sustain in the long term if anything happens beyond their control. I own PG and think they'll be just fine in the medium/long term, but they need to clean up their house a bit better and go back to increasing profits. Until then, a 3.2% dividend is just fine by me. And if shareholders start getting greedy and selling, then better yet, the P/E will go down, my yield will go up, and I can buy a bit more.

Funny enough, I was at the supermarket this Saturday looking for soap bars and I wanted to give P&G some money, I searched everywhere and couldn't find any, had to buy something from Unilever which didn't make me very happy (as I don't own Unilever). :S

[Dividendsrule]

(04-11-2016, 10:38 AM)Kerim Wrote: Nobody wants to vent about PG's paltry 1 percent dividend raise?

I know it can be seen as a prudent move, but sheesh, even so it is disappointing.

It's disappointing, to be sure.

But, keeping in mind changing business conditions and currency issues, I am fine taking the long view here. They have great products people use consistently...If you buy the biggest sometimes you gotta have patience when they try to right the barge. Everything has a growth and maturation point...They'll figure something out.

They have really high market share in their departments. When inflation hits again, they can raise prices, too. Huge addition to bottom line. Now, can't raise prices much. Long game.

[DividendGarden]

It's definitely disappointing and frustrating. When I first started DGI, PG was one of the six that I started with. Every year, their payout ratio grows, but we could still count on a 6% dividend increase. Seems like management has not done a great job of growing the top line, but understandably the FX hit hurts them quite a bit.

[ExDripper]

(04-11-2016, 11:34 AM)Rasec Wrote: (EricL, loved that article btw!)

I think it's better to have a responsible 1% raise than an irresponsible "KMIalike" raise which they won't be able to sustain in the long term if anything happens beyond their control.

(04-11-2016, 01:18 PM)Dividendsrule Wrote: It's disappointing, to be sure.

But, keeping in mind changing business conditions and currency issues, I am fine taking the long view here.

Ditto & ditto.

Being cautious with the raise means setting themselves up for success, not failure, as Rasec pointed out with the KMI example. Long term I believe they'll be fine.

[DividendGarden]

(04-12-2016, 09:23 AM)ExDripper Wrote: Being cautious with the raise means setting themselves up for success, not failure, as Rasec pointed out with the KMI example. Long term I believe they'll be fine.

Better safe than sorry.  Big increases in some years, small increases in others, it all averages out.  Seems like dividend increases are smaller this year, in general.  I am curious about WMT's next increase, as they've had very small increases back to back.

[EricL]

(04-12-2016, 09:49 AM)DividendGarden Wrote:

(04-12-2016, 09:23 AM)ExDripper Wrote: Being cautious with the raise means setting themselves up for success, not failure, as Rasec pointed out with the KMI example. Long term I believe they'll be fine.

Better safe than sorry.  Big increases in some years, small increases in others, it all averages out.  Seems like dividend increases are smaller this year, in general.  I am curious about WMT's next increase, as they've had very small increases back to back.

They've already announced the third consecutive $0.01 raise, to $0.50 per quarter.

[DividendGarden]

(04-12-2016, 10:30 AM)EricL Wrote:

(04-12-2016, 09:49 AM)DividendGarden Wrote: Better safe than sorry.  Big increases in some years, small increases in others, it all averages out.  Seems like dividend increases are smaller this year, in general.  I am curious about WMT's next increase, as they've had very small increases back to back.

They've already announced the third consecutive $0.01 raise, to $0.50 per quarter.

Yes, they announce for the entire year in advance.  I was referring to next year, but I wasn't clear.

[EricL]

(04-12-2016, 01:33 PM)DividendGarden Wrote:

(04-12-2016, 10:30 AM)EricL Wrote:

(04-12-2016, 09:49 AM)DividendGarden Wrote: Better safe than sorry.  Big increases in some years, small increases in others, it all averages out.  Seems like dividend increases are smaller this year, in general.  I am curious about WMT's next increase, as they've had very small increases back to back.

They've already announced the third consecutive $0.01 raise, to $0.50 per quarter.

Yes, they announce for the entire year in advance.  I was referring to next year, but I wasn't clear.

No biggie.

I was just pointing out that this was actually the 3rd small increase in a row, not the 2nd, as you said back to back in your first post.

[DividendGarden]

(04-12-2016, 01:43 PM)EricL Wrote: No biggie.

I was just pointing out that this was actually the 3rd small increase in a row, not the 2nd, as you said back to back in your first post.

I guess I didn't realize it was three in a row.  That's terrible.

[Rasec]

So I guess you've also received the 1854367 pages long prospect on the deal between P&G and Coty, we basically have a couple of weeks to tell them what we want to do with our P&G stocks.

I plan on keeping my small position on P&G as is, do I have to call them to tell them that? I honestly had no patience to go through the booklet and the online site doesn't say what we need to do.

http://news.pg.com/press-release/pg-corp...auty-brand


Anyone had more patience than me?