On July 30, 2026, after the US market close, global consumer goods giant Procter & Gamble (NYSE: PG) reported its fiscal fourth-quarter results for fiscal 2026. The data showed quarterly revenue rose 5% year over year to $21.5 billion, beating the market expectation of $21.0 billion; adjusted earnings per share reached $1.72, also above the analyst consensus. More notably, P&G announced a 10% increase in its quarterly dividend to $1.10 per share, marking the 70th consecutive year of dividend increases and further cementing its status as a "Dividend King." Driven by the double tailwind of strong earnings and the dividend hike, P&G shares rose more than 2% in after-hours trading, hitting a record high.
How did the US stock market's "long-term dividend bull" take shape?
P&G is not an isolated case. In the US capital market, more than 400 companies in the S&P 500 have raised dividends for over ten consecutive years, and dozens of them hold the "Dividend King" title. This culture of long-term, stable shareholder returns stems from the strong profitability and governance transparency of US companies. Unlike many emerging markets where investment logic focuses mainly on capital gains, US stocks place greater emphasis on sharing corporate growth with shareholders through dividends and buybacks.
For long-term investors seeking cash flow and steady returns, this "dividend compounding" mechanism is highly attractive. Take P&G as an example: over the past 20 years, despite multiple market cycles, its cumulative share price return exceeded 300%, with dividend reinvestment contributing nearly half of total returns. This is the core of the long-term allocation value of US stocks.
Why does global capital keep flowing into US stocks?
Against the backdrop of rising geopolitical uncertainty and slower growth in some regions in 2026, the US market's unique "safe scarcity" has become increasingly evident. On one hand, the US hosts the largest number of large multinational corporations in the world, with highly diversified revenue and profit sources that can effectively spread single-market risk. On the other hand, the US dollar serves as the world's primary reserve currency, and the Federal Reserve's monetary policy framework is relatively mature, providing overseas investors with tools for currency hedging and asset preservation.
The International Monetary Fund (IMF), in its Global Financial Stability Report released on July 29, noted that net international capital inflows into US stocks reached a multi-year high in the first half of 2026, with funds from Asian emerging markets accounting for nearly 30% of the total. The organization believes that upward revisions to US corporate earnings expectations and the certainty of shareholder returns are key factors attracting foreign capital.
Earnings season backdrop: rotation between tech innovation and defensive sectors
Admittedly, US tech giants delivered impressive results again in the second quarter, but concerns about high-valuation tech stocks are also building. Amid the noise, defensive consumer leaders like P&G have become beneficiaries of capital rotation. Their stable cash flow, low debt ratios, and global brand moats give them strong pricing power in a macro environment where inflation is cooling while consumer resilience persists.
From a sector allocation perspective, Goldman Sachs' strategy team recently recommended that investors modestly increase the weight of high-dividend sectors such as consumer staples and healthcare in US equity portfolios to hedge against rising tech volatility. P&G's strong earnings provide fresh micro-level evidence for this strategy.
Risk warnings and introductory thoughts on US stock investing
Of course, no investment decision should ignore risk. The US stock market also faces uncertainties such as excessive valuations, exchange rate fluctuations, geopolitical events, and policy changes. Especially with the Fed's rate path still unclear, short-term volatility remains high. For Asian investors, entering the US market requires thorough self-assessment and capital planning.
For those new to US stocks, it is advisable to start with dollar-cost averaging into index funds or ETFs such as the S&P 500 ETF (SPY) to reduce single-stock risk. When choosing a broker, prioritize US-regulated internet brokers that offer Chinese-language trading interfaces, such as Interactive Brokers or Charles Schwab. At the same time, remember the basic principles of diversification, long-term holding, and regular rebalancing to better enjoy the growth dividends of US stocks.
Conclusion
A strong earnings report from P&G reflects the deep appeal of the US stock market: high-level shareholder returns, transparent market institutions, and a world-class cluster of companies. For investors still wondering "why buy US stocks?" the answers may be straightforward: sustained dividends, long-term growth, and the allocation value of dollar-denominated assets.
- The fundamental driver of US stocks' long-term returns lies in corporate earnings and dividend growth.
- Global capital allocation demand will continue to support dollar-denominated asset performance.
- Staying rational and watching valuations and risks are important prerequisites for investing in US stocks.
