The realities of a weak economy, rating downgrades, and diminishing Treasury resources have investors ready to hit the panic button. Before you throw in the cards, though, consider a company with a proven track record of withstanding recessions: Procter & Gamble
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With more than 4.2 billion people consuming its products daily, P&G is indeed an industry leader. But rising commodity prices could increase production costs and drag down earnings. However, Procter & Gamble should be able to fight off rising costs by minimizing expenses and raising product prices.
The company's winning portfolio of products, which include 24 billion-dollar brands, give it an edge over competitors such as Unilever
Equally as impressive, 12 of the 24 brands are currently the No. 1 global market-share leader in their respective product categories. The company has a lot working in its favor overseas as well, with 15% of sales coming from Asia, 9% from Latin America, and 13% from Central and Eastern Europe. Developing markets in China and the Middle East offer opportunities for big gains.
During great economic upheavals, investors seek healthy dividend payouts -- and P&G offers plenty to smile about with its 3.3% dividend yield. The company has delivered an annual 14.5% increase in earnings per share for more than a decade -- an attractive figure for value investors.
One potential downside is that even though Procter & Gamble's strong earnings, label recognition, and growth potential in emerging markets put it ahead of competitors such as Unilever, shoppers buying generic store brands at the likes of Wal-Mart
Sustainable staying power
The company has outlasted more than one recession since its founding in 1837. I'm betting that as one of the world's 100 most sustainable companies, Procter & Gamble is in it for the long run -- as investors should be as well. Find out what other dividend-rich stocks to buy in an uncertain market with this free report: 13 High-Yielding Stocks to Buy Today.
Fool contributor Tamara Rutter owns none of the stocks mentioned here. Connect with her on Twitter, where she goes by @TamaraRutter. The Motley Fool owns shares of Wal-Mart Stores, Costco Wholesale, and Clorox. Motley Fool newsletter serviceshave recommended buying shares of Unilever, Costco Wholesale, Procter & Gamble, Wal-Mart Stores, and Clorox and creating a diagonal call position in Wal-Mart Stores. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insightsmakes us better investors. The Motley Fool has a disclosure policy.