3 American Companies Set to Dominate the World

By: Jim Royal

You're about to hear the greatest ways to profit from the trillions in wealth being created by the exploding middle class around the world. And what's more, other investors aren't aware of this massive opportunity.

It doesn't involve putting your hard-earned money on risky Chinese stocks or buying into some unproven technology. In fact, the three companies I'm about to highlight are based in the United States and have some of the most recognizable brands around. And for you dividend hounds, they pay rapidly escalating yields, too.

Invest in companies you know...

You know these companies and see their ads or use their products every day. But many investors are overlooking one thing that is turning these blue-chip companies into growth machines again.

That catalyst for growth: spending overseas.

Fortunately, the oversight by other investors allows you the opportunity to ride the economic growth that's sweeping through emerging markets -- but with the safety of an established and well-run American company.

The opportunity here is absolutely immense. We're talking about trillions of dollars in wealth being created by the world's fastest-growing economies. To give you some idea, though, let's run through the background.

...that are investing abroad

Globalization has been a huge investing buzzword over the last 20 years. Countries such as Brazil, Russia, India, and China -- the so-called BRIC nations -- have been rapidly industrializing, growing incomes at levels that can only be dreamed about by developed economies like the U.S. That's creating trillions in new global wealth.

But that doesn't mean that American investors can't grab a piece of the action.

Take a look at the growth in gross domestic product (or GDP) of the two largest nations (by population) to get a sense of the rapid development that's ongoing. You're already familiar with the largest, China, at 1.3 billion citizens, which has become the "workshop to the world."

From 2001 to 2009, China's GDP soared at an average rate of 14.9% annually (as measured in its own currency). That's stunning growth any way you slice it. And it compares more favorably against America's anemic 4% growth over the same period. From 1970 through 2009, China's economy grew 146 times larger, while the U.S. grew just 13.5 times larger.

But you might be less familiar with the prospects for India, which is not far behind with 1.2 billion citizens, but is much less developed. The growth curve looks just as attractive, though:

From 2001 to 2008, India put up an astounding 13.5% growth rate (in its own currency). Since 1970, India's economy has grown nearly 140 times its original size, compared to just 13.5 times for the U.S.

Consider this for just a minute: 2.5 billion consumers -- eight times as many as the U.S. -- are only just recently getting access to the Western-style products that dominate American and European markets.

And then there's also further opportunity in Russia, Brazil, Indonesia, as well as the many nations of Africa. While their populations aren't as large, the growth rates are still very enviable.

Those levels of industrialization have spawned an upwardly mobile middle class that is growing at a tremendous clip.

And they want American-style goods and services.

The McKinsey Global Institute estimates the middle class in India at just 50 million people, but projects the number to bloom to 583 million by 2030. Meanwhile, China's middle class is estimated at about 560 million and is expected to climb to over one billion by 2025. That compares to about 200 million in the American middle class.

That's trillions in new revenue that is just waiting to be earned by well-positioned companies.

And you can get a piece of the pie, if you know where to park your cash. The three American companies that I'll reveal to you shortly have only just begun to dig into the opportunities.

Fortunately, they're already on the ground overseas and they're laying down their competitive advantage for the prospect of decades of growth.

They are using their years of product, marketing, and consumer expertise to move swiftly and efficiently into new markets, establishing billions in new revenue streams in the process.