Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

The Coca-Cola Company (KO), 3M Co (MMM), The Procter & Gamble Company (PG): Do Dividend Investors Need These Three Dow (.DJI) Stocks?

The third company on the list is The Procter & Gamble Company (NYSE:PG), which is currently trading at $76, and has raised dividends for an astonishing 59 years, with a 9.6% DGR. The company has returned 24% over the past twelve months.

Analysts’ five-year annual growth estimate is 7.8%, the company’s PE is 17.3, and its dividend-payout ratio is 51%.

The Procter & Gamble Company (NYSE:PG) actually looks pretty good to me right now, scoring an 18 on my scale. However, the yield at 3.1% is just barely sufficient for my portfolio, and the yield is actually a bit elevated due to a recent sharp price decline after the company reported disappointing Q1 results.

I’ve created a chart to show how each company scores for each factor.

Company Years Yield DGR EGR Payout Total Return PE TOTAL
Coca-Cola 4 1 2 2 2 3 1 15
3M 4 0 0 2 4 3 2 15
P&G 4 2 2 2 2 4 2 18

If I were still looking to add companies to my portfolio, I would seriously be considering The Procter & Gamble Company (NYSE:PG). It’s a solid, reliable company that can be relied upon for consistent dividend increases and, most likely, pretty steady price appreciation.

You probably won’t be disappointed if you add any of these three companies to your dividend portfolio. However, I’ve found ten other companies that I think are better, and they may or may not appeal to you as dividend payers. You can be the judge.

The article Do Dividend Investors Need These 3 Dow Stocks? originally appeared on and is written by Karin Hernandez.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.