Procter & Gamble (PG +0.38%) isn't turning heads as a high-potential investment opportunity. But it's a hugely profitable business with staying power. And that can attract a specific type of investor.
If you invest $100 in this consumer staples stock every month, here's the passive dividend income it could generate over 10 years.
Image source: The Motley Fool.
Procter & Gamble currently pays a dividend yield of 2.96%. After 10 years, you'd have invested a total of $12,000 in this stock. Over that time, this company can bring in about $1,951 in cumulative income over a decade.
This is a rough calculation. And it excludes two key variables that make the estimate much more complex and unknown.
NYSE: PG
Key Data Points
This exercise doesn't take into account dividend increases. Higher payouts can further boost returns. Procter & Gamble has raised its quarterly dividend for 70 straight years. In the past decade, the payout has grown by 63%.
And changes in the stock price also play a huge role. Each month, that $100 allocation can buy more or less shares depending on market fluctuations. But in the last 10 years, Procter & Gamble's stock has risen by 67% (as of Sept. 24). It's reasonable to assume that steady appreciation could continue.
At the end of the day, what matters for prospective investors is that they can earn a healthy income stream from this company.
