Is Dividend King for you?

You’ve probably heard of the company Colgate-Palmolive, especially if you’re a big fan of the brand’s toothpaste. However, Colgate-Palmolive Company (NYSE: CL ) makes so many more products than just toothpaste. Let’s take a look at some facts about the Colgate-Palmolive Company, as well as some pros and cons of investing in the company.



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When you want to invest in a company that pays dividends, you are probably looking for ongoing payments from a stock. When listed companies pay dividends, they share profits with shareholders on an ongoing basis, which can happen on a monthly, quarterly, semi-annual or annual basis, depending on the company’s performance and privileges.

A company’s board must approve the dividend and will then announce when the dividend will be paid, how much each shareholder will receive. They also announce the ex-dividend date. This is the date you must be a shareholder to receive the dividend.

Knowing all this, by the time you’re done reading, you’ll hopefully have a better idea of ​​whether Colgate-Palmolive Company will fit your investment needs.

About Colgate-Palmolive Company

In 1806, the founder of the Colgate-Palmolive Company, William Colgate, started a starch, soap and candle business in New York City. In 1857 the company was reorganized as Colgate & Company. Later BJ created Johnson Soap Co. Palmolive Soap, which is currently developed in 88 countries in 54 varieties.

Our MarketBeat profile shows that Colgate-Palmolive Company, still headquartered in New York City, manufactures and sells consumer products worldwide, including the following:

  • Toothpaste
  • Toothbrushes
  • Mouthwash
  • Bare hand soap
  • Liquid hand soap
  • Shower soap
  • Shampoo
  • Conditioner
  • Deodorant
  • Antiperspirant
  • Skin health products
  • Dishwashing liquid
  • Fabric softener
  • Household cleaning agent

The company’s brands include the following US-based and foreign brands:

  • Colgate
  • Darlie
  • elmex
  • Hello
  • meridol
  • Sorriso
  • Tom’s of Maine
  • Irish Spring
  • Palmolive
  • Protex
  • Sanex
  • Soft soap
  • Lady Speed ​​Stick
  • Speed ​​Stick
  • EltaMD
  • Filorga
  • PCA SKIN
  • Ajax
  • Axion
  • Fabulous
  • Murphy
  • Suavitel
  • Soup line
  • Cozy

The company works through a number of brick-and-mortar and e-commerce retailers, wholesalers and distributors, including a range of pharmaceutical products for dentists and other oral health professionals.

In addition, the company operates a pet nutrition segment, which produces nutritional products for pets under the Hill’s Science Diet brand. Through the Hill’s Prescription Diet brand, the company also produces a range of therapeutic products to treat diseases in dogs and cats.

Learn more: 11 High-Yield Dividend Stocks

Pros and Cons of Investing in Colgate-Palmolive Company

What are the pros and cons of investing in Colgate-Palmolive Company? Let’s start with the pros and start with the cons of choosing this particular dividend stock.

Benefits

The benefits of investing in Colgate-Palmolive Company include the following:

  • Dividend benefits: According to MarketBeat dividend data, Colgate-Palmolive Company’s dividend yield is 2.50% and its annual dividend is $1.88. There is no doubt that the Colgate-Palmolive Company takes care of its shareholders; it has offered a growing dividend over 59 years, making it a Dividend King. Dividend Kings have been increasing their dividend payments for at least 50 consecutive years, making them reliable dividend stocks if you’re an investor looking for a steady income stream.
  • Recession-proof investment: Recession-proof investments maintain stable value during a downturn in the economy. For example, consumer goods (such as groceries, household products and other necessary goods) are recession-proof. People still need everyday things like toothpaste, even during economic downturns. Colgate-Palmolive Company fits into the category of a type of investment that can do well in a downturn.
  • Famous brands: The Colgate-Palmolive Company has brands that enjoy a household name with a strong reputation. The company is also diversified across many different countries. In fact, it sells its products in hundreds of other companies outside the US and derives more than half of its sales from outside the US

Cons

On the flip side, it’s worth taking a look at the cons too:

  • Struggling shareholder values: Colgate-Palmolive has had problems creating shareholder value over the past decade, challenges with organic growth, increased operating costs, inflationary pressures, challenges with emerging markets and recently falling market shares.
  • GAAP EPS falls: In Q2 reports, GAAP EPS fell 13% to $0.72 and core business EPS fell 10% to $0.72. Ultimately, on a GAAP basis, the company expects a decline in gross profit margin, increased advertising spending and double-digit growth in earnings per share.
  • Low yield and growth rate: The company does not seem to have it in itself to shoot up in value. Ultimately, it is a low-growth stock, so it may not be the most exciting stock on the market. In addition to that, its lackluster growth and lower dividend yield (compared to other companies in the market, that is) might give you pause.

Learn more: 10 Dividend Stocks Forever

Is Colgate-Palmolive Company the right dividend king for you?

Why might you want to consider investing in a Dividend King? Dividend investors shoot for Dividend Kings companies because they pay a constant dividend and continue to increase their dividends over a number of years. It can be a great way to build wealth over time, take advantage of passive income, generate income for retirement and offset inflation during tough economic times.

A dividend investor can increase your total return, but it’s important to choose the right type of investment for your particular needs. Colgate-Palmolive Company may not be really exciting because it is a low-growth stock with a yo-yo history of stock returns. If you are looking for great capital return and/or the biggest dividend payout, you may want to look into other options compared to Dividend Kings. But if you’re looking for steady growth over time, it may suit your needs well.

Consider the Dividend Kings vs. Aristocrats list if you’re interested in checking out some other high-performing stocks. Consider investing in several dividend stocks at the same time to get a more diversified portfolio.

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