Procter & Gamble Company (PG): The 4Q09 earning per share was $0.80 (vs. $0.84 in 3Q09).

• The key highlight was reduced earnings on q-o-q and y-o-y basis (vs. $0.92 in 4Q08) and reduced revenue.
• For year 2009, EPS increased by 17% to $3.64 (from $4.26). This increase is due to sale of Folger’s business unit.
• Yearly dividend of $1.76/share is well covered with earnings. Payout ratio is at 41%.

Clorox Corporation (CLX): The 4Q09 earning per share was $1.20 (vs. $1.08 in 3Q09).

• The highlight was 8% increase in EPS (vs. $1.13 in 4Q08) on y-o-y basis.
• For year 2009, EPS increased 16% to $3.81 (from $3.24)
• Increased EPS came from combination of increased revenue and cost control.
• Annual dividend of $2.00/share is well covered with earnings. Payout ratio is 52%.

The Chubb Corporation (CB): The year 2Q09 earnings per share was $1.54 (vs. $0.95 in 1Q09).

• This is increase in earnings on y-o-y (vs. $1.27 in 2Q08)
• The highlights were increase in operating income (6%) and reduced revenue from premium collections.
• Quarterly dividend of $0.35/share is well covered with earnings. The annual payout ratio is 23%.

PepsiCo (PEP): The year 2Q09 earnings per share was $1.02 (vs. $1.05 in 1Q09).

• The key highlights were reduced y-o-y EPS (vs. $1.05 in 2Q08).
• Y-o-Y revenue reduced by 3%. The reduction in EPS was due reduced sales of Pepsi’s beverage products.
• Quarterly dividend of $0.45/share is very well covered. Quarterly payout ratio is 44%.

While PG and CB showed reduce earnings and revenue, the payout factor has sufficient room to cover the dividends. These four companies keep marching and battling the recession.