Procter & Gamble Company (PG): Among the Best Dividend Monarchs to Invest in Now

Vardah Gill

Wed, Apr 16, 2025, 8:08 AM 6 min read

We recently published a list of the 10 Best Dividend Monarchs to Invest in Now. In this article, we are going to take a look at where Procter & Gamble Company (NYSE:PG) stands against other best dividend monarchs.

Dividend-focused investors are generally well-acquainted with terms like Dividend Aristocrats and Dividend Kings, but many may not be aware of a lesser-known group called Dividend Monarchs. While they fall under the broader category of dividend growth stocks, they carry a distinct title. The Dividend Monarchs Index highlights US companies that have managed to raise their dividends consistently for at least 50 consecutive years. These firms have weathered decades of market ups and downs, showcasing both resilience and steady performance in terms of dividend growth and stock returns. As an evolution of the well-known S&P Dividend Aristocrats Index Series, the S&P Dividend Monarchs Index sets an even higher standard, recognizing a more exclusive tier of long-term dividend payers.

S&P Dow Jones Indices has been a pioneer in dividend growth strategies since the 1980s, initially tracking US companies with at least 10 years of dividend increases. As the number of such companies grew, the threshold was raised to 25 years, forming the basis for the Dividend Aristocrats Index, launched in 2005. This index became a widely recognized benchmark, eventually expanding to include mid- and small-cap stocks as well as global markets. By April 2023, over $40 billion in ETF assets tracked these indices. With a rising number of companies now surpassing 50 consecutive years of dividend growth across different market caps, S&P introduced the Dividend Monarchs Index in 2023 to reflect this new elite group.

The key distinction between Dividend Kings and Dividend Monarchs lies in the inclusion criteria. While both require at least 50 consecutive years of dividend increases, Dividend Monarchs must also meet specific standards set by S&P. To qualify for the Dividend Monarchs Index, a company must be part of the Composite 1500, have a float-adjusted market capitalization of at least $2 billion, maintain a three-month average daily trading value of $5 million or more, and consistently grow its dividend over five decades. This added layer of eligibility makes Monarchs a more selective, index-based group.

Companies that meet the tough 50-year dividend growth requirement tend to show strong profitability and financial stability. According to an S&P Dow Jones Indices report dated April 30, 2023, the Dividend Monarchs Index outperformed both the broader market and the S&P Composite in terms of return on equity (ROE) and showed more consistent earnings. The report also noted that, based on back-tested data since January 31, 2018, the Dividend Monarchs Index displayed more defensive traits—offering lower volatility and smaller drawdowns than the S&P 500 during market declines.