Colgate-Palmolive (NYSE: CL) – A Stock Analysis

by 036Gooddaysir036

INTRODUCTION:

This will be a quick post looking into Colgate-Palmolive (NYSE: CL) and why it could be a solid conclusion in a dividend growth portfolio. This company needs no introduction itself, we are all aware they make toothpaste, but some of the other brands under their company name might be surprising. It specializes in the production, distribution and provision of household, health care, personal care and veterinary products.

COLGATE-PALMOLIVE DIVIDEND HISTORY, PAYOUT, AND FINANCIALS:

The company has paid a out dividend since 1895 and increased its dividend for over 57 consecutive years; qualifying the company as a Dividend King.

(For Reference)

  • Challenger: 5+ years
  • Contender: 10-24 years
  • Champion/Aristocrat: 25+ years
  • King: 50+ years

Current Annual Dividend: $1.76

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Earnings (Current as of November):

  • Normalized Earnings Per Share: $2.99
  • Cash Flow From Operations (CFO) Per Share:  $4.28
  • Free Cash Flow Per Share:  $3.88
  • P/E Ratio – 26.61
  • Net debt to EBITDA ratio of only 1.4 (This is very healthy)

From this it can be concluded that the company is very stable, it has solid earnings, and the dividend is safe.

DOES THE COMPANY HAVE A WIDE MARKET?

Yes. They own many different brands, as it was mentioned above. In addition to oral care, they produce shampoos, shower gels, deodorants, and home care products.

It also owns specialty/medicinal pet food maker Hill’s, which sells its products through veterinarians and specialty pet retailers.

CL’s products are sold in over 200 countries with international sales accounting for ~70% of sales.

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It owns Ajax (Francis…Deadpool anyone?)

FINAL THOUGHTS:

Yep, Colgate-Palmolive is about as exciting as toothpaste, but it is a quality company with solid financials and incredible staying power due to its wide product line and brands. The company is a dividend grower and is considered to be a consumer defensive stock, it would make an excellent addition to any dividend growth portfolio if it hasn’t already been considered. Please supplement this post with your own research!

As always, thanks for reading, and have a good day/night!

Disclaimer: This information is only for educational purposes. Do not make any investment decisions based on the information in this article. Do you own due diligence or consult your financial professional before making any investment decision.