ABBV
ABBVIE INC.
stock NYSE

> investing for dividend growth
Future dividend growth comes from either future earnings growth, paying out a larger percentage of earnings as dividends, or shrinking share count while allocating the same number of dollars to go to dividends.
PG had $6.84 in TTM EPS. It's most recent quarterly dividend was $1.09, which is $4.36 annualized. Which means its payout ratio is 63.7%. Its long term expected earnings growth rate is 3.16%. And it has reduced its share count by less than 1% per year since 2018.
So, limited room to expand its payout ratio. Not committed to significantly reducing its share count. And its expected earnings growth might barely exceed inflation, hopefully.
I see no reason to expect much future dividend growth from PG.
Payout Ratio (most recent quarterly payment annualized / TTM EPS), 5 year expected EPS growth rate listed on FinViz:
ABBV, 340.89%, **21.52%**
ABT, 70.19%, *9.42%*
CL, 82.17%, 5.26%
DUK, 65.24%, 6.69%
HD, 66.19%, 6.02%
JNJ, 61.97%, *9.15%*
KMI, 80.41%, 7.99%
KO, 66.67%, 7.45%
MCD, 61.34%, 7.78%
PEP, 92.94%, 5.84%
PG, 63.65%, 3.16%
SO, 77.75%, 7.69%
TXN, 97.09%, **22.76%**
WM, *54.70%*, *10.67%*
If it's for me, I like to see at least high single digit expected EPS growth rate and a payout ratio under 45%. I might go as high as a 60% payout ratio if the yield was high enough, but WM is only yielding 1.76% and that wouldn't make the cut. ABBV and TXN at least have strong expected earnings growth which will bring down their payout ratios and support future dividend growth.
But, PG, PEP, CL... bleh.

I’m hardcore in SCHD. Investing weekly in it along with VOO. However, about 4 years ago I dropped a good amount into INSW, ABBV, and MO… I can’t get myself to sell them even though many say it’s more sensible to consolidate them all into SCHD or VOO. I just feel like those 3 stocks are my money printing machine with the consistent dividends. The goal of dividend ETF’s and stocks is to hedge against market crashes and create passive income. Sure QQQ will probably outperform SCHD on paper but you don’t have to realize the position with SCHD to make real money. The dividends pay out monthly and reinvest automatically creating that snowball. QQQ for example will give you a lot of gains of paper but you only make the money if you cash out the position. Kind of the general philosophy I’d say. I’d say dividend investing is about creating passive income while trading growth stocks/etf’s is about making bigger returns.

Nice portfolio, but if the goal is retirement income, I’d question why you’re holding so many individual names that yield less than SCHD. SCHD is around 3.25% and a lot of these individual positions are below that.
Under that filter, I’d consider rotating **PG, ABBV, ABT, HD, JNJ, WM, KO, MCD, TXN, and CL** into **SCHD**. **SO** is basically tied with SCHD, so I’d call that borderline. The biggest one I’d trim is **PG**, not because it’s a bad company, but because it’s over 22% of the portfolio while yielding less than SCHD.
I’d probably keep **PEP, DUK, KMI**, and possibly **SO** for income. I’d also consider adding **ET** and **MO** for higher current yield, but I’d size them responsibly: **ET** has MLP/K-1 tax complexity, and **MO** has long-term tobacco/regulatory risk.
Overall, if a stock yields less than SCHD and you don’t have a strong reason to expect better dividend growth or total return, I’d rather just own SCHD and reduce single stock risk.

> investing for dividend growth
Future dividend growth comes from either future earnings growth, paying out a larger percentage of earnings as dividends, or shrinking share count while allocating the same number of dollars to go to dividends.
PG had $6.84 in TTM EPS. It's most recent quarterly dividend was $1.09, which is $4.36 annualized. Which means its payout ratio is 63.7%. Its long term expected earnings growth rate is 3.16%. And it has reduced its share count by less than 1% per year since 2018.
So, limited room to expand its payout ratio. Not committed to significantly reducing its share count. And its expected earnings growth might barely exceed inflation, hopefully.
I see no reason to expect much future dividend growth from PG.
Payout Ratio (most recent quarterly payment annualized / TTM EPS), 5 year expected EPS growth rate listed on FinViz:
ABBV, 340.89%, **21.52%**
ABT, 70.19%, *9.42%*
CL, 82.17%, 5.26%
DUK, 65.24%, 6.69%
HD, 66.19%, 6.02%
JNJ, 61.97%, *9.15%*
KMI, 80.41%, 7.99%
KO, 66.67%, 7.45%
MCD, 61.34%, 7.78%
PEP, 92.94%, 5.84%
PG, 63.65%, 3.16%
SO, 77.75%, 7.69%
TXN, 97.09%, **22.76%**
WM, *54.70%*, *10.67%*
If it's for me, I like to see at least high single digit expected EPS growth rate and a payout ratio under 45%. I might go as high as a 60% payout ratio if the yield was high enough, but WM is only yielding 1.76% and that wouldn't make the cut. ABBV and TXN at least have strong expected earnings growth which will bring down their payout ratios and support future dividend growth.
But, PG, PEP, CL... bleh.

I’m hardcore in SCHD. Investing weekly in it along with VOO. However, about 4 years ago I dropped a good amount into INSW, ABBV, and MO… I can’t get myself to sell them even though many say it’s more sensible to consolidate them all into SCHD or VOO. I just feel like those 3 stocks are my money printing machine with the consistent dividends. The goal of dividend ETF’s and stocks is to hedge against market crashes and create passive income. Sure QQQ will probably outperform SCHD on paper but you don’t have to realize the position with SCHD to make real money. The dividends pay out monthly and reinvest automatically creating that snowball. QQQ for example will give you a lot of gains of paper but you only make the money if you cash out the position. Kind of the general philosophy I’d say. I’d say dividend investing is about creating passive income while trading growth stocks/etf’s is about making bigger returns.

Nice portfolio, but if the goal is retirement income, I’d question why you’re holding so many individual names that yield less than SCHD. SCHD is around 3.25% and a lot of these individual positions are below that.
Under that filter, I’d consider rotating **PG, ABBV, ABT, HD, JNJ, WM, KO, MCD, TXN, and CL** into **SCHD**. **SO** is basically tied with SCHD, so I’d call that borderline. The biggest one I’d trim is **PG**, not because it’s a bad company, but because it’s over 22% of the portfolio while yielding less than SCHD.
I’d probably keep **PEP, DUK, KMI**, and possibly **SO** for income. I’d also consider adding **ET** and **MO** for higher current yield, but I’d size them responsibly: **ET** has MLP/K-1 tax complexity, and **MO** has long-term tobacco/regulatory risk.
Overall, if a stock yields less than SCHD and you don’t have a strong reason to expect better dividend growth or total return, I’d rather just own SCHD and reduce single stock risk.