Colgate-Palmolive is a American company, founded in 1806 by Willam Colgate. Is there still any need to present the company's products? Toothpastes, toothbrushes, soaps, detergents under famous names such as Colgate and Pamolive of course, but also Ajax, La Croix, Soupline, Tonygencil, Tahiti, Genie, Paic, Soupline, Gama... Few companies can boast of having such a history and products that are so well-known throughout the planet.
They are also everyday consumer products, which are by nature not very sensitive to economic uncertainties. In short, Colgate-Palmolive is typically the kind of title you can buy and leave in a corner so that it makes offspring. Like many titles of our portfolio and defensive stocks, the company has been underperforming the market for several months. We have thus suffered a loss of just over 9% on CL since August. This period should be considered as a buying opportunity for stocks of this type, even though the market as a whole can already be considered overvalued. It is true that soaps and toothpastes are not the sexiest things and that they are a bit of a grandparent's investment, but when you see the long-term profitability of Colgate-Palmolive, it gives you food for thought...
What about dividends? The company offers a decent long-term yield of 2,46%. Distributions have been able to be increased at an impressive rate (for a grandpa's investment) of 14,42% in recent years. The weight of history is also reflected in dividends since Colgate-Palmolive has increased its distributions every year for 48 years! The payout ratio is just below 50%, which leaves CL with plenty of room to run in case of a downturn. The only downside is the volatility, at 14.19%, which is much higher than other companies of this type. Despite this, our algorithm still considers Colgate-Palmolive as a good buying opportunity.
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Good morning,
Do you still recommend buying this stock with the sharp drop last May (<60$)???
In this period of stock market fever, all purchases must be considered with great caution. CL is among the best investments still possible from my point of view. The decline that has started since May (which is not that strong) helps to make the stock a little more attractive, but above all CL remains CL: a very solid quality company. In the long term, with such stocks, we do not take too much risk, even if the market were to correct. Which is still very likely to happen in the fairly near future...