Procter & Gamble Vs. Johnson & Johnson


When you think of Procter & Gamble and Johnson & Johnson, you immediately think of the company’s strong brand portfolios. I love consumer staple giants for this reason. These two companies own brands that can be found in every house’s medicine cabinet, laundry room, and nursery!

Owning strong brands that dominate in their sectors is key to building a strong, consistenly growing earnings and cash flow streams. That is why the two companies have been able to achieve Dividend King status.

So lets take a look at the top brands for each companies and see if one company’s brand portfolio is better than the other. Here is a detailed list, per each company’s website.

Procter & Gamble Brands: Pampers, Luvs, Bounce, Cheer, Downy, Dreft, Tide, Gain, Bounty, Charmin, Puffs, Always, Braun, Gillette, Head & Shoulders, Old Spice, Pantene, Febreze, Cascade, Mr. Clean, Dawn, Swiffer, Crest, Scope, Oral-B, Pepto Bismol, Vicks, Ivory, Olay, and more!

Johnson & Johnson: Neutrogena, Aveeno, Rogaine, Lactaid, Splenda, Tylenol, Zyrtex, Benadryl, BENGAY, Nicorette, Sudafed, Listerine, Band-aid, Neosporin, Desitin, and more!

Both lists contain powerhouse brands. I cannot pick a winner from the two. Both are great and are found throughout my house!

Winner: Draw

April 2021 Dividend Increase

April is the best month for dividend investors. Why?  Many great dividend growth stocks announce an increase to YOUR dividend payout during the month. It is hilarious that these two dividend titans also increase their dividend in the same month.  Both companies have already announced their dividend increase for the month. Man oh man, was the news great. It was just another example that DIVIDENDS ARE BACK!

The results are in. In fact, both companies have announced their dividend increases already.  The following chart compares the dividend increases for PG and JNJ:

The Procter & Gamble dividend increases was double Johnson & Johnson. It is not that JNJ’s dividend increase was bad. In fact, it was in line with our expectations and just 1% below the company’s five-year average dividend growth rate. We just weren’t expecting such a MASSIVE dividend increase from PG. Especially given that the company’s recent dividend growth was significantly lower than this 10% pop in 2021.  There is a clear cut winner for this dividend metric.

Winner: Procter & Gamble

Price to Earnings Ratio (Stock Screener Metric #1)

The first metric of our dividend stock screener is the Price to Earnings Ratio. This metric is a quick calculation that helps you assess the valuation of a company. We typically compare a company’s P/E Ratio to the S&P 500 to make sure the stock’s valuation is less than the market.  In 2021, that’s typically an easy feat given the fact the S&P 500’s P/E Ratio is over 40x!

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Disclaimer: I do not recommend any decision to the reader or any user, please consult your own research. Thank you.

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