Why Procter & Gamble Hit an All-Time High and What It Means for Investors

Executing despite myriad challenges

Procter & Gamble recently surpassed its previous all-time high, thanks to its adept navigation of supply chain issues and inflation. The company's ability to maintain solid sales and operating margins during tough times highlights its resilience and strategic approach.

PG Revenue (TTM) data by YCharts

As the chart illustrates, P&G's sales have surged over the past five years, with margins holding up well even during inflationary periods. The combination of sales growth and healthy margins reflects P&G's strong brand portfolio and pricing power.

A justifiably expensive stock

P&G's premium valuation is justified by its consistent delivery on shareholder promises. The company has a track record of steady growth in earnings, dividends, and share buybacks, making it an attractive option for value and income investors.

Dividend quality over quantity

P&G's recent dividend increase and long history of annual increases highlight its reliability as a dividend stock. The company's focus on both dividends and share buybacks provides investors with a balanced mix of income and growth.

A foundational dividend stock

While P&G may not be a bargain buy, its recent performance and investment thesis support its current valuation. The company's strong sales growth, margins, and dividend history position it as a foundational holding with a compelling long-term outlook.