The Best Dividend Stock for 2027 and Beyond: Procter & Gamble

Micah Zimmerman, The Motley Fool

Mon, August 31, 2026 at 6:05 PM GMT+3 5 min read

When I think about the best dividend stock for the next decade, the name I keep coming back to is Procter & Gamble (NYSE: PG) even though I do not own it yet and probably should.

These days, it feels like everything is shaky at once. Jobs are less secure, housing costs are stubbornly high, and the stock market swings between artificial intelligence (AI) euphoria to panic in a matter of weeks. I do not want my sleep-at-night money riding on the next hype cycle.

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What I do want is a company that quietly sends cash to my account every quarter and keeps doing it whether the economy is booming or in a recession. Procter & Gamble fits that bill better than almost anything else I can find.

A dividend you can plan your life around

Right now, P&G pays an annual dividend of about $4.35 per share, which works out to roughly a 3% yield at recent prices. The payout ratio is around 64% to 66%, meaning the company sends back a little under two-thirds of its earnings to shareholders and keeps the rest to reinvest in the business. That is a healthy balance, not the desperate "pay everything" approach you see in troubled companies.

Even better, P&G has raised its dividend for around 70 consecutive years, with five-year dividend growth running about 5% to 6% annually. This 70-year increase makes it a Dividend King, a company that has grown its dividend for at least 50 consecutive years. I look at that streak and see something I can actually plan around.

Image source: Getty Images.

What the business looks like under the hood

P&G is a global consumer-staples machine, selling branded products in beauty, grooming, healthcare, fabric, home care, and baby, feminine, and family care. It owns names like Tide, Pampers, Gillette, Crest, Dawn, Bounty, and dozens more that sit in bathrooms and kitchens everywhere I go.

In its latest quarter, P&G reported core earnings per share (EPS) of $1.59 and revenue of $21.2 billion, both slightly above Wall Street expectations, with growth spread across categories and regions. That kind of steady, broad-based performance is exactly what I want behind a dividend check.

Why P&G feels recession-proof to me

One reason I am drawn to P&G is that people do not stop washing clothes or brushing their teeth during recessions. They might skip a vacation or delay a car purchase, but basic hygiene and cleaning products stay in the budget even when money is tight.

Consumer staples as a sector has historically held up much better than the market during downturns, and P&G is one of the flagship names in that defensive group. For someone who worries about financial insecurity and the next economic shock, owning a slice of a company whose products are literally used daily by hundreds of millions of households feels like a stabilizer.

Another thing I like is how deliberate P&G is about rewarding shareholders. Management recently outlined plans to pay roughly $10 billion in dividends in fiscal 2026 alone, on top of ongoing share repurchases. The company has kept its payout ratio in a comfortable range and grown the dividend at a mid-single-digit pace for decades, which lets my income compound over time even if the share price only moves moderately.

In a world where many companies talk about "returning capital" and then cut the dividend at the first sign of trouble, P&G is the grown-up in the room.

Why I want to own it

It is more exciting to talk about AI chips or robotaxis than laundry detergent and toothpaste. But when I think about the part of my portfolio that should help me sleep at night, I do not need excitement. I need dependability. Procter & Gamble gives me a starting yield of around 3%, a 70-year record of raises, a portfolio of recession-resistant brands, and management that has already committed billions of dollars per year to keeping that income stream flowing.

So, when I consider the best dividend stock for 2027 and beyond, the answer I keep circling back to is P&G. If I want something that can keep sending me cash through whatever financial surprises come next, I would rather finally add this Dividend King than keep watching it from the sidelines.

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Micah Zimmerman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

The Best Dividend Stock for 2027 and Beyond: Procter & Gamble was originally published by The Motley Fool