Procter & Gamble raises dividend for 70th year amid strong cash flow despite tariff and cost pressures

Procter & Gamble (P&G) announced its 70th consecutive annual dividend increase, raising the payout by 3% to a forward yield of 3%. Despite market concerns over tariffs, commodity costs, and interest expenses impacting FY2026 guidance, P&G's strong cash flow—$4.045 billion operating cash flow in Q3 and a 1.80x dividend coverage ratio in FY2025—supports dividend sustainability. The company also continues share buybacks and sees organic sales growth across all product categories and regions. Future outlook depends on commodity prices, especially Brent crude, but the dividend streak is expected to continue given solid cash generation and management's commitment.