Colgate-Palmolive: Improved Financials To Navigate Headwinds (Rating Upgrade)

The Gaming Dividend
5.24K Followers

Summary

  • Colgate-Palmolive has been growing revenues and managing the challenging economic environment well with strong earnings growth.
  • The company offers stability and reliability in a volatile market, with a wide portfolio of products that people buy regardless of market conditions.
  • The dividend growth has been weak, but the company remains a reliable source of dividend income with over 60 years of consecutive raises.
  • My dividend discount model estimates a fair value over $92 per share.

A wide angle view of the iconic Colgate Clock

Brian Logan

Overview

With the current high inflationary environment, we are seeing a ton of companies tightening down on spending and implementing different cost-saving initiatives because of slowing sales volume. However, Colgate-Palmolive (NYSE:CL) has been steadily growing revenues and

This article was written by

5.24K Followers
Financial analyst by day and a seasoned investor by passion, I've been involved in the world of investing for over 15 years and honed my skills in analyzing lucrative opportunities within the market.I specialize in uncovering strategies to utilize various investment vehicles - seeking out high quality dividend stocks, and other assets that offer potential for long term-growth that pack a serious punch for bill-paying potential. I use myself as an example that with a solid base of classic dividend growth stocks, sprinkling in some Business Development Companies, REITs, and Closed End Funds can be a highly efficient way to boost your investment income while still capturing a total return that follows traditional index funds. I create a hybrid system between growth and income and manage to still capture a total return that is on par with the S&P.You can read more of my work here.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in CL over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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