Example of a consumer packaged goods company
Procter & Gamble Co. is one of the largest consumer packaged goods manufacturers in the globe. The conglomerate produces 65 brands across 10 categories that include home products, baby care, and grooming.
Because it produces staples that customers buy regardless of economic conditions, Procter & Gamble is known as a solid defensive stock. In 2022, when the S&P 500 tanked by almost 20%, Procter & Gamble shares only dropped about 7%. The company posted 7% growth in organic sales for the fiscal year, according to its 2022 annual report.
Like many CPG manufacturers, Procter & Gamble has been relatively slow to shift to e-commerce. Online sales were up 11% in fiscal 2022, representing 14% of total sales.
As of May 2023, Procter & Gamble paid a $0.94 quarterly dividend, amounting to an annual yield of 2.58%. With 67 consecutive annual dividend hikes under its belt, the CPG giant is a solid member of the Dividend Kings.