Does The Procter & Gamble Company (PG) Pass Buffett’s Test?

However, despite its size, Church & Dwight Co., Inc. (NYSE:CHD) has managed to offer high growth and return money to shareholders through increasing dividends and stock buybacks. Colgate-Palmolive Company (NYSE:CL)’s wide margins have allowed it to weather increased costs of raw materials better than some competitors, but tough economic conditions have caused its growth to slow in Latin America and other emerging markets.

Businesses with consistently high ROIC show that they’re efficiently using capital. They also have the ability to treat shareholders well, because they can then use their extra cash to pay out dividends to us, buy back shares, or further invest in their franchise. And healthy and growing dividends are something that Warren Buffett has long loved.

The article Does Procter & Gamble Pass Buffett’s Test? originally appeared on

Jim Royal has no position in any stocks mentioned. The Motley Fool recommends Procter & Gamble.

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