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Stocks For The Long Run: Procter & Gamble (PG)





Dividend Hikers: Some companies that can't maintain a perfect earnings record still manage to increase their dividends like clockwork. In fact, more than 100 have hiked dividends for 30 years in a row, and 22 dividend machines have rolled past the 40-year mark.

Procter & Gamble has raised its payout for an incredible 50 straight years. The company's great array of soaps and personal-care products (Tide, Crest, Head & Shoulders and Pampers, among others) are recession-resistant. People don't stop washing their hair or diapering their babies because the economy is sluggish.

So P&G generally enjoys great earnings stability. When the company acquired Gillette last year, some analysts thought that P&G had overpaid and that the merger would take too long to pay off. Whether the deal was well priced or not, P&G's earnings are expected to be up 13% this year and next. That should allow the dividend, which now provides a 2% yield, to keep rising.



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