Procter & Gamble (NYSE: PG) proved again it is no gamble for investors, but a solid blue-chip company that can improve its shareholder value over time. The stock price may pull back, and the market may experience volatility, but it trends higher, and the chart is showing a trend-following signal early in 2025. The FQ2 2025 earnings report sparked the signal, which may lead to a new all-time high this year. Regardless of when the new high is set, a new high is likely, and until then, there are capital returns to keep the market interested.
The share buybacks aren’t robust but sufficient to offset dilutive activities and reduce the count incrementally each quarter. Buybacks in FQ2 amounted to $2.5 billion shares, doubling the $2.4 billion spent on dividend distribution, reducing the count by roughly 0.4%. Regarding the dividend, the stock yields about 2.5% in mid-January, at the high end of the historical range and a value for investors. The stock trades about 24x its earnings compared to the historical 28x average, suggesting the upswing in price action could be vigorous. A 4x multiple expansion to align with the ten-year average is worth more than 16% upside in addition to dividend distribution and an attractive gain for any dividend investor.
