Is It Safe? Procter & Gamble Tries to Keep Up

Rival Colgate-Palmolive(CL), on the other hand, is forecast to increase its per-share net income 11% in fiscal 2010, which ends in December of next year. Unilever(UN) (UL) is projected to boost earnings more than 25% next year.

Niche competitors, such as Clorox(CLX), Energizer Holdings(ENR), Kimberly-Clark(KMB), Estee Lauder(EL), Bristol-Myers Squibb(BMY) and Johnson & Johnson(JNJ), are expected to expand earnings by 7% to 20% next year.

While a fiscal year that ends in June might reflect more recessionary pain than a December-ending one, stock investors haven't expressed much confidence in the company. The shares are down 16% this year, making it the third-worst performing member of the S&P 500 Consumer Staples Index. The 41-company benchmark has lost 2.8%. P&G's stock price nearly tripled between early 2000 and late 2007.

Founded in 1837, P&G has paid dividends without interruption since its incorporation in 1890 and has increased payouts for 53 consecutive years. Despite a disappointing fiscal third quarter, the company boosted its dividend 10% in April.

Moreover, P&G's $84 billion in annual sales is twice as big as those of its main competitors. And, with 138,000 employees in 80 countries, it's the largest advertiser in the world.

Even so, P&G has earned a grade of C-plus from TheStreet.com Ratings, which amounts to a "hold" recommendation. Colgate-Palmolive, with $18 billion in sales, has earned an A-minus, a "buy" rating. It's one more reason to give investors pause before buying shares.

TSC Ratings provides exclusive stock, ETF and mutual fund ratings and commentary based on award-winning, proprietary tools. Its "safety first" approach to investing aims to reduce risk while seeking solid outperformance on a total return basis.

>To order reprints of this article, click here: Reprints