#8: Procter & Gamble
Current Dividend Yield: 3.3%
Performance So Far in 2012: +3%
Procter & Gamble (NYSE:PG) is one of the biggest names in dividend investing, so I’m not uncovering some hidden gem here. But it’s worth noting that P&G has long-term potential despite the fact that many investors might think it has fallen out of fashion.
Admittedly, PG stock hasn’t doing much on a share appreciation basis year-to-date — but it is up about 15% since the end of June. Procter & Gamble CEO Bob McDonald has a big long-term plan that involves fighting rising commodity costs and finding growth overseas. It also just posted pretty strong Q4 earnings to send shares up about 15% since the end of June.
You can’t get more bulletproof than brands like Gillette, Pampers and Duracell. These consumer products provide reliable revenue across rough economic times — and thus reliable dividend payments, too.
And longer-term, there’s a chance that Procter & Gamble will benefit very nicely from changing currency exchange rates. A strong dollar and weaker euro have weighed on the earnings of this multinational. But if that dynamic changes, it could boost profits.