Should You Buy Shares in the Super-Safe Dividend King Stock That Expects to Return at Least $16 Billion to Shareholders in Its Fiscal 2025?

Core Viewpoint - Procter & Gamble (P&G) is recognized as a leading Dividend King, having increased its dividends for 68 consecutive years, and has returned over $147 billion to shareholders in the last decade, making it an attractive investment for those seeking reliable income streams [1][9]. Financial Performance - P&G reported a 12% increase in diluted net earnings per share (EPS) for the first quarter of fiscal 2025, with expectations of 2% to 4% sales growth and 10% to 12% diluted net EPS growth compared to $6.02 in fiscal 2024 [3][5]. - The company plans to return $16 billion to $17 billion to investors, including $10 billion in dividends and $6 billion to $7 billion in stock repurchases, reflecting a 7% increase in dividends announced in April [2][5]. Sales and Volume Growth - Organic sales growth was only 2%, with flat volume growth, indicating challenges in returning to volume growth despite strong pricing power amid inflation [3][4]. - P&G's product mix showed negative trends in beauty and grooming categories (-3%) and flat performance in baby, feminine, and family care, while healthcare grew by 4% [3][4]. Capital Return Program - Over the past decade, P&G has consistently returned capital to shareholders, with a total of $147.8 billion returned, which exceeds the combined market caps of Nike and Dollar General [5][7]. - The company has increased its dividend by over 56% in the last decade, although its current dividend yield stands at 2.4% due to strong stock performance [8][9]. Valuation and Investment Considerations - P&G's current price-to-earnings (P/E) ratio is 29.3, above its historical median range of 25.5 to 26.3, indicating that investors are paying a premium for quality [10]. - Despite weak sales growth, P&G continues to grow earnings and return significant capital to shareholders, making it a solid long-term investment option [10].