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On Friday, Procter & Gamble (NYSE:PG) announced a 7.05% increase in the company's quarterly dividend. The dividend increases to 56.2 cents per quarter versus 52.5 cents in the same quarter last year. The 7% increase is one of the lowest rate of increases in recent years. The payout ratio increases to 56.8% based on fiscal year 2012 estimated earnings of $3.96. Earnings for FY 2013 are estimated at $4.30 or growth of a little over 8%.

From The Blog of HORAN Capital Advisors

On a one year basis, the stock return of P&G has essentially matched the return of the S&P 500 Index. However, on a year to date basis, P&G's return has lagged the market by almost 10 percentage points. P&G's stock does tend to hold up well during market corrections, as noted by the performance of the stock late last year. On a technical note, the trading volume has spiked over the last few trading days on down days for the stock.

Click to enlarge:

From The Blog of HORAN Capital Advisors


Disclosure: Our firm is long PG.

Source: Procter & Gamble Increases Dividend And Payout Ratio