Colgate-Palmolive Is Not Attractively Valued For Income Investors
- Colgate-Palmolive has a long history of outperformance and dividend growth.
- While the company has been achieving dividend growth in excess of 10% per year, its payout ratios (both based on earnings and free cash flow) continue to rise.
- A Gordon Growth Model shows that based on expected future dividends, Colgate shares are slightly overvalued.
- Relative to several of its competitors, Colgate shares appear fairly valued, although there are probably better options available for dividend investors in its sector.