The maker of household brands
The Procter & Gamble Company (NYSE:PG) defines itself as a “branded consumer packaged goods” company. It owns brands such as Duracell batteries, Tide detergent, Dawn dish detergent, MACH 3 razor blades, etc. The public’s love of these brands will keep this company going for some time. This company produces hard to replicate high-quality brands that fulfill the daily needs of modern day life.
Over the past five years this company grew its revenue and free cash flow 9% and 13%, respectively. Its stock price advanced 19% beating the S&P 500 by 2%.
In The Procter & Gamble Company (NYSE:PG)’s most recent quarter, revenue and free cash flow grew 2% and 24%, respectively. The strength in the company’s latest earnings report came from the “needs” part of the business with the health and baby care segment showing the strongest gains with sales increasing 8% and 3%, respectively. The vanities part of the business served as its greatest weakness. The beauty and grooming segments each lost 2% of their sales.
The Procter & Gamble Company (NYSE:PG) paid out 56% of its free cash flow in dividends in its last quarter. As of this writing, The Procter & Gamble Company (NYSE:PG) yields 3.1% per year in dividends.
Cost savings programs will continue to boost margins for The Procter & Gamble Company (NYSE:PG). Consumers in emerging markets embracing the many brands of the company will serve as future avenues of top and bottom-line growth.
Hailing from Europe
A consumer goods company with roots in the Netherlands, Unilever plc (ADR) (NYSE:UL), also owns many household items you may recognize like Dove soap, Axe deodorant, Hellman’s mayonnaise, Vaseline, and Ben & Jerry’s ice cream.
Over the past five years Unilever plc (ADR) (NYSE:UL)’s revenue and free cash flow increased 28% and 62%, respectively. The share price of the company’s Unilever, PLC American depository receipts increased 24% versus 17% for the S&P 500. Meanwhile the share prices of the company’s Unilever NV shares increased 22% versus 17% for the S&P 500.
Unilever plc (ADR) (NYSE:UL) paid out 68% of its 2012 free cash flow in dividends. The Unilever plc (ADR) (NYSE:UL), PLC American depository receipts and Unilever NV listed shares currently yield 3.2% and 3.3%, respectively, as of this writing.
Unilever plc (ADR) (NYSE:UL)’s most recent quarterly sales, when factoring out exchange rates and brand disposals, increased 5%. Unilever faced a tough competitive environment in its food and refreshment segments. All of Unilever’s sales growth came from emerging markets.
