Procter & Gamble increases dividend for 60th consecutive year

Dividend Aristocrat Procter & Gamble (PG) will hike its dividend by exactly 1%.

The quarterly dividend will be raised to $0.6695 per share, marking the 60th consecutive year of dividend increases.

This dividend increase marks the 60th consecutive year that the Company has increased its dividend, demonstrating its commitment to - and extending its long-term track record of - returning cash to shareholders. The Company expects total dividend payments to shareholders of approximately $7.5 billion in fiscal year 2016, bringing total dividends paid over the last decade to nearly $60 billion. P&G has been paying a dividend for 126 consecutive years since its incorporation in 1890.

P&G noted that the amount of the dividend increase reflects the cash impacts from streamlining and strengthening the business unit portfolio and the Company's plans to increase investments in the business to achieve balanced top- and bottom-line growth. With this dividend increase, P&G's payout ratio of dividends to net earnings is expected to be over 70% for the current fiscal year. Based on P&G's recent stock price, the annualized dividend yield on P&G's common stock is approximately 3.2%.

Procter & Gamble currently has an estimated dividend yield of 3.2% based on Friday's close of $83.20 per share.

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