Some of the most boring products in your grocery cart have quietly funded dividend streaks stretching back decades, and five companies selling those exact staples are still raising payouts even as their own businesses face serious headwinds.
Colgate-Palmolive has paid a dividend since 1895 and has 63 years of consecutive dividend growth. To collect around $1,000 in dividend income annually from a Colgate-Palmolive stock purchase, a $43,239 investment would be required.
CL's innovation, premiumization and emerging-market expansion are strengthening its brands and creating avenues for long-term growth.
Colgate-Palmolive has sent dividend checks without interruption since Grover Cleveland's second term, but a 130-year streak and a shrinking North American business now sit in uncomfortable tension with a premium valuation that leaves almost no room for error.
Two Dividend Kings with 50-plus years of consecutive raises have reported earnings, and one of them is funding its payout in a way that should raise eyebrows. The question is whether that really makes it the riskier bet.
CL is betting on premium innovation, higher ad spending and targeted pricing to revive North America growth after a weak second quarter.
Colgate is reportedly shopping Softsoap, Irish Spring, and Speed Stick with Goldman Sachs running the process, but the names most investors would expect to step up all have reasons to sit this one out.
Colgate-Palmolive is upgraded to a buy as organic growth momentum returns and profitability remains sector-leading. CL's recent organic sales growth of 2.4% and 2026 guidance approaching long-term targets underpin optimism for multiple expansions. Despite a premium forward P/E (~22.7x), CL's superior EBITDA margins, robust free cash flow, and dividend reliability justify its valuation.
Chasing the fattest yield on the screen is a trap most income investors fall into, but a handful of companies have quietly raised their payouts through oil shocks, financial meltdowns, and a global pandemic without skipping a beat.
Colgate-Palmolive Company (CL) Presents at Barclays 19th Annual Global Consumer Staples Conference Transcript
Some dividend stocks raise their payouts through one recession, maybe two.
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