Here's Exactly How Much $5,000 in Procter & Gamble Has Paid Out in Dividends Since 2020

It's hard to believe that the pandemic started more than six years ago. There was human suffering, of course, and businesses closed due to stay-at-home orders.

However, looking back on those bleak times, it does show the power of buying high-quality, dividend-paying companies and holding on to them. If you'd invested $5,000 into market leader Procter & Gamble (NYSE: PG), here's how much you'd have collected in dividends.

Beyond that, here's why you should continue owning the company's shares.

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Adding up dividends

The stock price closed Dec. 31, 2019, at $124.90. If you'd decided to buy $5,000 worth of Procter & Gamble's shares before heading out to a New Year's Eve party, you'd have purchased 40 shares.

You'd have received higher dividend payouts each year. In fact, Procter & Gamble has one of the most impressive dividend histories. As of this year, the company has paid dividends for 136 years and raised them annually for the last 70 straight years. That makes Procter & Gamble a Dividend King, an impressive group of companies that has increased dividends for at least 50 straight years.

During 2020, you'd have received $124.72 in total payments. And that figure grew. From 2021 through today, the company paid $136, $144.39, $149.42, $158.41, $167.08, and $172.89 for those 40 shares. That totals about $1,053.

The first quarterly dividend you received was $0.7459 per share, and the latest one was $1.0885 per share. That's 46% growth.

Continued support

Companies can retain earnings or pay them out in dividends. Fortunately, Procter & Gamble has ample earnings to do both.

That's because the company sells essential, everyday products that have leading market shares. This includes shampoo, razors, toothpaste, detergent, and diapers. Consumer staples such as these remain in demand regardless of the state of the economy or people's personal financial situations.

Procter & Gamble continues to grow sales and earnings. The company's fiscal first-quarter sales, adjusted to remove foreign-currency translations and acquisitions/divestitures, grew a steady 4% year over year.

Importantly, 2.4 percentage points came from higher volume, and a changing mix added 1.1 percentage points. Higher prices only added 0.4 percentage points. Core earnings per share increased 1%.

However, management projects this year's earnings per share will increase by up to 3%, with sales growing 1% to 3%. While that might not sound impressive, it comes in the face of cost pressures. Long term, the steady demand should translate into higher earnings and dividends.

That means shareholders can rely on higher dividends for the foreseeable future.

Lawrence Rothman, CFA has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.