Can This Passive-Income Machine Keep Up With Inflation?
Procter & Gamble (NYSE: PG) will update investors on its fiscal 2022 fourth-quarter earnings before the markets open on July 29. The consumer packaged goods giant has increased its dividend per share from $2.14 to $3.24 in the last decade and is battling to keep costs under control as inflation soars worldwide.
The company has repeatedly raised the estimate of how much inflation adversely impacts profitability. Investors hope those increases have ended when it releases earnings on July 29.
In its third-quarter conference call that followed its earnings release, Proctor & Gamble said that rising commodity prices will be an after-tax $2.5 billion headwind for the fiscal year 2022. To put that figure into context, P&G reported revenue of $76 billion in the 2021 fiscal year. Fortunately, the company generated a healthy 23.6% operating profit margin in 2021, so it had wiggle room to absorb higher costs and remain highly profitable.
Source Fool.com
