#9: Procter & Gamble
Current Dividend Yield: 3.2%
Performance So Far in 2012: +4%
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 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 13% since July 1, so there are signs of life.
You also 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.
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.
And if you’re a bear looking to preserve capital? Well, consumer staples are a great place to hide out.
P&G reports earnings Oct. 25.