04-11-2016, 10:56 AM
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.
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.