Investors should consider dividend stocks like Procter & Gamble for stable income and potential growth
From Yahoo Finance: 2025-05-10 04:15:00
Amid trade concerns and a weakening economy, investors turn to dividend-paying stocks for stability. Dividends offer dual benefits: potential for capital appreciation and steady income. Rising interest rates had dampened interest in dividend stocks, but renewed focus suggests their resilience in volatile markets. Data shows dividends represent a significant portion of market returns over time.
Financial advisor Michael Dinich highlights the importance of dividend-paying stocks in income portfolios. Dividends provide a reliable income source for investors to reinvest or use for financial needs. Data from S&P Dow Jones Indices shows dividends historically contribute significantly to overall market returns. WisdomTree research emphasizes the income-generating potential of dividend stocks, especially in low-rate, high-volatility environments.
Global dividend payments hit a record $1.75 trillion in 2024, with an underlying growth of 6.6%. Janus Henderson projects a 5.0% increase in global dividends in 2025 to reach $1.83 trillion. Europe and emerging markets like India show strong dividend growth. Companies in major countries like US, Canada, France, Japan, and China hit record dividend levels. 88% of companies either raised or maintained dividends in 2024.
The Procter & Gamble Company (PG) is highlighted as one of the best income stocks to invest in now. The company boasts a wide range of popular brands across various product categories. In fiscal Q3 2025, PG reported mixed results, with earnings per share slightly below expectations and revenue declining year-over-year. Despite short-term challenges, management remains optimistic about the long-term outlook for their brands and markets.
PG generated $3.7 billion in operating cash flow in Q3 2025, with shareholder returns totaling $3.8 billion. The company declared its 69th consecutive annual dividend increase, continuing its 135-year streak of uninterrupted dividend payments. PG now pays a quarterly dividend of $1.0568 per share, with a dividend yield of 2.68% as of May 9. Overall, PG ranks 10th on the list of the best income stocks to buy now.
Investors are encouraged to consider deeply undervalued dividend stocks for potential higher returns within a shorter timeframe, over stocks like PG. Insider Monkey offers insights into such stocks through their research on hedge fund investments. The focus on hedge fund activity stems from their ability to outperform the market by mirroring top stock picks. Insider Monkey’s strategy has yielded significant returns since 2014, outperforming its benchmark by 218 percentage points.
Read more at Yahoo Finance: One of the Best Income Stocks to Invest in Now