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5-Star Stocks Poised to Pop: Procter & Gamble

Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, consumer products titan Procter & Gamble (NYSE: PG  ) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at Procter & Gamble's business and see what CAPS investors are saying about the stock right now.

Procter & Gamble facts

Headquarters (Founded) Cincinnati (1837)
Market Cap $185.4 billion
Industry Household products
Trailing-12-Month Revenue $79.25 billion
Management

CEO Robert McDonald (since 2009)

CFO Jon Moeller (since 2009)

Return on Equity (Average, Past 3 Years) 17%
Cash/Debt $2.6 billion / $33 billion
Dividend Yield 2.3%
Competitors

Colgate-Palmolive (NYSE: CL  )

Johnson & Johnson (NYSE: JNJ  )

Unilever (NYSE: UL  )

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 97% of the 7,153 members who have rated Procter & Gamble the stock will outperform the S&P 500 going forward. These bulls include factoids and All-Star vitrified, who is ranked in the top 0.5% of our community.

Just last month, factoids tapped Procter & Gamble as a particularly multifunctional pick: "A good yield and a great dividend growth history along with a reasonable [payout ratio]. ... Some stocks I own for growth. Some stocks I own so I can sleep well at night. [Procter & Gamble] is a very good combo of both attributes."

Procter & Gamble's famous brands, massive scale, and global growth opportunities continue to support its five-star CAPS rating. Over the past five years, Procter & Gamble has even grown its bottom line (12.3% per annum) at a faster pace than rivals Colgate (11.6%), Johnson & Johnson (8.2%), and Unilever (7%), as well as other consumer goods stocks like Energizer Holdings (NYSE: ENR  ) (4.2%).

CAPS All-Star vitrified elaborates on the bull case:
 

Pampers is the leading diaper brand in China. ... [T]here is still lots of room for [Procter & Gamble] to expand globally, and that will be the source of most of its growth. Right now, share buybacks and dividends provide an [effective cash yield] over 6%, from a remarkably safe play (leading brands in consumer staples, which likely also have the pricing power to withstand coming inflation). ... Won't be a massive outperformer, but should outperform.

What do you think about Procter & Gamble, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Procter & Gamble, Johnson & Johnson, and Unilever are Motley Fool Income Investor picks. The Fool owns shares of and has written covered calls on Procter & Gamble. Johnson & Johnson and Energizer are Inside Value picks. Unilever is also a Global Gains selection, and Energizer has been singled out by Stock Advisor. Motley Fool Options has recommended a diagonal call position on Johnson & Johnson, and the Fool owns shares of it. Motley Fool Alpha owns shares of Johnson & Johnson. Try any of our Foolish newsletter services free for 30 days.

We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.


Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On January 20, 2011, at 10:58 AM, woodisgood wrote:

    P&G's market cap is 184 BILLION, not million. What other data are you providing in the article that is wrong????

  • Report this Comment On January 20, 2011, at 12:11 PM, TMFKris wrote:

    @woodisgood: We have corrected the error. Thanks for pointing it out.

    Kris - TMF copyeditor

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DocumentId: 1425832, ~/Articles/ArticleHandler.aspx, 5/26/2012 5:52:42 AM

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Related Tickers

5/25/2012 4:05 PM
PG $62.49 Down -0.08 -0.13%
The Procter & Gamb… CAPS Rating: *****
UL $31.88 Up +0.06 +0.19%
Unilever CAPS Rating: *****
JNJ $62.51 Down -0.59 -0.94%
Johnson & Johnson CAPS Rating: *****
CL $98.80 Down -0.33 -0.33%
Colgate-Palmolive… CAPS Rating: *****
ENR $72.87 Up +1.01 +1.41%
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