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

Procter & Gamble (NYSE:PG) is a global leader in household and personal care products. Its best-known brands in Europe are Gillette and Pampers. The company has a 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. Currently, the stock offers a dividend yield of 3.40%, which is higher than its long-term average (2.95%). The company has been growing its dividend at an annual rate of 11.17%. With a 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...

With an attractive yield, a long history of successive dividend increases, attractive average annual distribution growth and low volatility, we consider PG to still be a purchase opportunity to this day.