We’ve seen a real bloodbath in the emerging markets, but multinational consumer stocks that have been in these countries for a long time look largely insulated from both Chinese sluggishness and the euro madness. We talk about defensive growth today on Trading the Globe (10:20 ET, CNBC).
Soaring sales in Russia have led paper products maker Kimberly-Clark to open a factory near Moscow. This is a theme emerging markets investors should watch.
Dallas-based KMB now books a third of its overall revenue from foreign markets like Russia, which has seen sales of disposable diapers and other products increase tenfold over the last decade.
The company is spending $170 million to build out its new Moscow facility. Plans to expand in China, South Korea, Israel, Latin America and Australia are in the works as well.
As people in emerging economies adopt western consumer and hygienic habits, global brands like KMB become growth prospects again. Similar companies that operate in Mexico and Brazil are reporting booming sales. Russia in particular is an interesting area because consumer spending is ramping up fast; retail activity could crack 6% growth by 2012.
KMB offers exposure to all of this along with considerable cash generation potential. Dividend yield is 4.32%.