This Dividend Stock's Moat Is as Wide as It Gets. 3 Reasons to Buy and Hold Forever.

Procter & Gamble (NYSE: PG) has achieved thing that fewer others have. Not lone is it 1 of the world's largest user staples companies, but it is besides a Dividend King with a 70-year streak of yearly dividend increases. That is the longest streak among user staples makers, with the next-closest streak held by Coca-Cola (NYSE: KO) astatine 64 years.

Here are 3 reasons wherefore P&G has built specified an awesome dividend history, each of which are bully reasons to bargain the banal and its 2.9% output today.

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1. Brand spot

Consumer staples companies are driven by the brands they own. Procter & Gamble's brands are household names, similar Bounty, Tide, Charmin, Always, Gillette, Dawn, Old Spice, Crest, and Ivory, among galore others. What's peculiarly important astir these brands is that they thin to run astatine the precocious extremity of the market, which helps enactment beardown margins for P&G. However, its brands are often class leaders, which draws shoppers into stores. That makes the institution a cardinal spouse for its retailer customers. It would beryllium difficult, if not impossible, to recreate the marque portfolio that P&G has spent much than 100 years building.

2. Size and scope

Good brands are the foundation. As noted, P&G is 1 of the world's largest user staples companies. It besides has a almighty organisation system, allowing it to reliably proviso its retailer customers with products. And it has the selling wherewithal to enactment those customers with advertisement dollars.

But that's not all, P&G's size besides gives it the quality to bargain smaller brands arsenic it shifts its portfolio to support gait with user buying habits. On that front, it precocious agreed to bargain Thorne, a institution that makes products specified arsenic creatine, whey, and electrolyte drinks. The determination volition grow P&G's scope successful the wellness space, which is progressively important to consumers.

Companies don't commencement retired with P&G's scale. It takes decades to physique up to this point. And with P&G already truthful acold ahead, it stands retired from the pack.

3. New and improved

Another payment of the company's standard is its monolithic probe and improvement capabilities. This factor, however, has to beryllium breached retired separately due to the fact that the presumption "new" and "improved" are truthful important successful the user staples sector. In fact, portion of the company's quality to complaint much for its products stems from offering products that supply consumers with existent benefits. That is driven by ongoing innovation provided by a almighty R&D platform. As with the different 2 points above, you simply can't replicate P&G's capabilities present overnight.