IPG - paying a growing dividend

  • IPG’s current yield of 3.5% is attractive for investors looking for a company that has a history of paying a growing dividend.
  • IPG is trading at an attractive valuation and despite a widely expected recession or economic slowdown in the back half of 2023, it is still confident of producing 2%-4% growth.
  • With a 6%-7% dividend growth rate, it is reasonable to expect a total 8%-11% return by the end of 2023.
  • Despite its size, IPG managed to grow organically at high single-digit rates both domestically and internationally in almost all of its three business segments.
  • IPG operates in an industry where companies cannot afford not to advertise so even if clients cut their advertising budgets for a while, the business will return eventually.