When it comes to the investment world, Procter & Gamble (PG) is a name that is well-known and frequently discussed. One topic of particular interest to investors is the company’s history of stock splits. In this blog post, we’ll delve into this topic, tracing PG’s history of stock splits and discussing recent developments.
Procter & Gamble Stock Split History
Procter & Gamble (PG) has had six stock splits. Every division was executed as a 2-for-1 split, implying that each shareholder was granted two shares after the split for every share of PG-owned prior to the split. The following table outlines the dates of these splits:
|05/19/1970||2 for 1|
|02/22/1983||2 for 1|
|11/20/1989||2 for 1|
|06/15/1992||2 for 1|
|09/22/1997||2 for 1|
|06/21/2004||2 for 1|
Recent Developments and Speculations
Currently, there are no confirmed reports of a recent PG stock split. It’s been over a decade since PG’s last split in 2004. There has been some speculation about whether or not a split is imminent, given the company’s historical pattern and stock price performance. However, based on the company’s stock price appreciation and timing between splits, it doesn’t appear that a split is imminent now.
P&G is currently on a good growth path, but challenges are ahead. Despite the challenges posed by increasing prices and a decline in consumer spending across various sectors, the company’s most recent quarterly report revealed an impressive 7% surge in organic sales through the end of March. However, sales volumes have been negative for nearly a year, showing weakness. On the other hand, P&G’s operating profit margin is over 20% of sales, which is impressive compared to rivals like Kimberly-Clark, with a 14% rate. The company also has a strong cash flow, recently hiking its 2023 capital return target to $17 billion.
|Sales||Despite the challenges of increased prices and a decline in consumer spending, the latest quarterly update revealed a remarkable 7% surge in organic sales.|
|Sales Volume||For almost a year now, the sales volumes have been persistently negative, indicating clear indications of weakness.|
|Operating Profit Margin||At just above 20%, the sales figures are currently hovering close to their pandemic peak and are notably superior to those of rivals such as Kimberly-Clark.|
|Cash Flow||Consistently, the corporation transforms more than 90% of its profits into unencumbered cash flow. P&G has recently announced a significant increase in its 2023 capital return target, which now stands at an impressive $17 billion.|
What is the history of P&G’s stock splits?
Procter & Gamble has had six 2-for-1 stock splits in its history, occurring in 1970, 1983, 1989, 1992, 1997, and 2004.
Is a P&G stock split likely to happen soon?
No clear patterns suggest an imminent P&G stock split, as it depends on factors like substantial stock appreciation, timing, and weighting in the Dow Jones Industrial Average.
What is P&G’s current growth path?
Despite rising prices and weaker consumer spending, P&G is on a good growth path, with a robust 7% rise in organic sales in the last quarterly update.
How is P&G’s operating profit margin doing?
P&G’s operating profit margin is substantial, over 20% of sales, which is near its pandemic high and significantly higher than competitors like Kimberly-Clark.
What is P&G’s stock valuation?
P&G’s stock valuation is high, priced at 4.8 times annual sales.
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