Procter & Gamble (NYSE:PG): another "emerging" American

Procter & Gamble (NYSE:PG) est leader mondial dans les produits ménagers et de toilette. Ses marques les plus connues en Europe sont Gillette et Pampers. L'entreprise possède une impressive global razor blade market share of 70%! With the economic slowdown P&G has decided to focus its growth strategy on emerging markets.

P&G already has a large and growing market share in China and Russia. CEO Bob McDonald said in 2010 that he wanted to increase sales in China and India to 1 billion customers by 2014.  While the average Mexican spends about $20 billion per year on P&G products, the average Chinese spends only $3 billion and the average Indian spends $1 billion. Increasing sales in China and India to Mexico's levels would add $40 billion to PG's revenue. Despite this exposure to emerging markets, PG remains sensitive to changes in its currency, with a $risk of 0.47, a drop in the dollar partly accompanied by a drop in the title in CHF.

The company has achieved the feat ofincrease its dividend over the previous 56 years. Actuellement, le titre offre un dividend yield de 3.40%, ce qui est supérieur à sa moyenne à long terme (2.95%). L'entreprise a fait progresser son dividende à un rythme annuel de 11.17%. Avec un distribution ratio of 52.25%, it has a certain margin of coverage to continue to increase its dividend.

Its standard deviation of 10.85% makes it one of the least volatile stocks in our portfolio. The beta of only 0.46 confirms that PG is not very sensitive to market variations.

Procter & Gamble posts a quite exceptional long-term profitability. We still need razors and diapers...

Avec un rendement intéressant, un long historique d'augmentations successives du dividende, une croissance annuelle moyenne intéressante des distributions et une volatility peu élevée, nous considérons que PG est toujours une purchase opportunity to this day.