Colgate-Palmolive (NYSE:CL): benefit from emerging markets

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.

As of 2011, the company holds a staggering $44.71 billion in global market share with its flagship toothpaste line. Although the company is based in the United States, Colgate-Palmolive generates more than two-thirds of its turnover outside the United States. For this reason, the company is very sensitive to currency exchange rates, with a weaker dollar boosting sales. About half of the figure comes from emerging markets, with Latin America representing the largest source of revenue in 2010. Colgate has been steadily expanding its operations throughout Latin America, Africa and Asia.

CL offers 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. 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 long term performance correct of 2.56%. The distributions were able to be increased at an impressive average annual rate (for a grandpa's investment) of 13.32%. The weight of history is also reflected in the dividends since Colgate-Palmolive has increased its distributions every year for 48 years! THE distribution rate is just below 46% which leaves a good margin for CL in case of a hard blow.

The title displays a particularly low volatility, with 8.04%. The beta of 0.47 indicates that CL is also not very sensitive to market variations.

Our algorithm still considers Colgate-Palmolive as a excellent buying opportunity.