Dividends and Tide maker P&G eyes price hikes with possible US tariffs looming

When President Trump was running for President, one of the many things he said was he wanted to reduce prices. People liked that, although he did not talk about raising individual incomes, but the price of things. In reality, prices are determined by a wide variety of factors, including what the happens at the White House.

In an article by Jessica Dinapoli and Ananya Mariam Rajesh of Reuters, Proctor & Gamble or P&G will again look at raising prices on its household basics such as Tide detergent, if the US imposes new tariffs.

P&G CFO Andre Schulten said, we will deal with what the administration does, first they will try to offset tariffs with cutting costs. What we cannot offset with productivity, it might result in incremental price increases.

P&G is a powerhouse in consumer products and buys inputs such chemicals, razor blades and small electronics from around the world and manufactures the final product closer to consumers in local factories.

P&G has increased prices over several years as it faced escalating costs of fuel and labor.

One of its many products is Gillette, over the past 4 years P&G has overhauled its razor blade supply chain, a move that could cushion its margins under new tariffs.

In 2024, P&G locked its pricing in for Chinese chemical supply for its sunscreens.

P&G also has formulation flexibility, meaning it can adjust the ingredients in is products if they become too expensive or unavailable owing to tariffs.

After COVID hit the world, P&G invested $6 billion in US manufacturing in the past 6 years.

Linking to dividend paying stocks, P&G is a dividend favorite because it has close to 20 brands that generate well over $1 billion. If you look in your house, you will likely see some P&G brands. Those kind of products and marketing abilities ensures P&G continues to generate profits and pay dividends. When you examine the companies you earn, have they adjusted their supply systems to ensure.

There are more questions than answers, till the next time – to raising questions.

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