Is This Dividend King Nearing the End of the Road With Consumers? 3 Things Investors Should Watch Out For.
Procter & Gamble (NYSE: PG) has an incredible dividend track record, with a huge string of 67 consecutive annual dividend increases under its belt. It has deftly navigated difficult operating environments before. And so far, it has done an excellent job in the face of high inflation this time around.
But fiscal 2024 second-quarter results hint that the consumer staples icon could be facing a tougher future.
In fiscal 2023, P&G's organic sales were rock-solid even in the face of fast-rising costs, thanks to a spike in inflation. To put some numbers on that, in the first quarter of that year, organic sales rose 7%; in the second quarter, 5%; the third quarter, 7%, and the year ended with 8% growth in the fourth quarter. That was followed by 7% growth in the first quarter of fiscal 2024. Pricing has been a big driver of growth, as P&G passes on rising costs to consumers.
Source Fool.com
