Between 2011 and 2015, Procter & Gamble raised its dividend from $1.97 per share to $2.65 per share. During these four years, each share of P&G that got purchased at $60 in 2011 paid out $11.50 in cumulative dividends if you forward count the September and December payments. At an average reinvestment price of $68.23 over the past four years, and assuming the final two payments get reinvested at the current market prices, an investor would have created 0.168 shares of Procter & Gamble over the past four years just by making a singular decision in 2011 and checking off the reinvest box.
I mention this because the past four years have been nothing great for Procter & Gamble. In fact, you could argue that it has been one of the worst relative stretches in the company’s history because it has only grown revenues by 2.5% annually over the past … Read the rest of this article!