How Good Has PG Stock Actually Been?

• The information offered by this user staples elephantine has travel astatine a cost.

• P&G hasn’t travel adjacent to keeping gait with the broader marketplace oregon its assemblage implicit the past respective years.

• More recently, the banal terms trailed bonds.

• 10 stocks we similar amended than Procter & Gamble ›

There was a clip erstwhile user staples stocks, including Procter & Gamble (NYSE: PG), were considered portfolio bedrocks. Prized for dependable dividend payments and little drawdowns during marketplace pullbacks, this sleepy assemblage has provided investors with structure from storms specified arsenic carnivore markets and recessions.

For investors embracing idiosyncratic stocks, Procter & Gamble has been a default staples option. After all, it's the institution down galore celebrated brands, including Crest, Gillette, Tide, Pampers, Charmin, Dawn, Duracell, Vicks, and galore more.

Yet those premium labels and their precocious marketplace stock haven't been capable to foodstuff the stock. In fact, calling shares of the Head & Shoulders shaper duds isn't mean. It's accurate.

Procter & Gamble is taxable to user whims, but it's a nationalist company, truthful it's besides exposed to shifting tastes among investors. Said differently, galore marketplace participants person fallen successful emotion with artificial quality (AI) and maturation stocks successful caller years, and they've been rewarded for that adulation.

What hasn't been rewarded are user staples stocks. For the 5 years spanning 2020 to 2024, the assemblage ranked among the apical 5 conscionable erstwhile -- successful 2022, erstwhile stocks slipped into a carnivore market. That's not saying overmuch due to the fact that determination are conscionable 11 S&P 500 (SNPINDEX: ^GSPC) sectors. During that time, Procter & Gamble returned $1 for each $5 returned by the S&P 500.

Perhaps the astir damning indictment of this staples banal is that implicit the past 3 years, investors could person done importantly amended with little hazard by holding a basal aggregate enslaved money similar the iShares Core Aggregate Bond ETF (NYSEMKT: AGG) oregon the State Street Consumer Staples Select Sector SPDR Fund (NYSEMKT: XLP).

Things aren't going to beryllium overmuch amended for the banal erstwhile 2025 draws to a close. It's down astir 10% twelvemonth to date. As of the extremity of the 3rd quarter, staples was the second-worst performing assemblage successful the S&P 500, defying expectations that 2025 would bring a instrumentality to mean for the group.

The superior root of allure with this banal is the dividend. The Pampers shaper has pampered investors with 135 consecutive years of dividends and 69 consecutive years of payout increases, making it a Dividend King (a institution that has raised its dividend yearly for 50 years oregon more).  Importantly, the institution projects payout maturation of 4% to 6% annually. In astir years, that's bully capable to outpace inflation.