If you're an investor looking for dividend consistency, a yield over 2%, and stock appreciation of 16% year to date, you might be surprised that consumer staples veteran Colgate-Palmolive Company (CL -0.23%) fits the bill.
NYSE: CL
Key Data Points
Yes, the maker of cleaning supplies, shower soap, and even pet food has had an excellent year in the market. The company has also paid an uninterrupted dividend since 1895 and increased that dividend for 64 straight years. It is truly one of the most remarkable Dividend Kings available. A Dividend King is a company that has raised its dividend for at least 50 consecutive years.
Colgate recently increased its quarterly payout to $0.53 per share. The dividend is funded by the company's free cash flow of about $3.6 billion. Colgate is also experiencing strong growth for a company of its size. In the first quarter of 2026, net sales increased 8.4%, and the company maintained its full-year 2026 guidance.
Image source: Getty Images.
The biggest challenge for Colgate is the ongoing battle with inflationary pressures on materials. This was evident in the first-quarter results, as earnings per share and gross profit margin decreased. Fortunately, Colgate has very strong pricing power and global brand recognition. The company has also invested heavily in technology to drive innovation and improve efficiency.
For long-term income-focused investors, Colgate is a defensive hybrid offering both a solid yield and growth. The stock's current forward P/E ratio is about 24 and is also trading at about three times company sales, which could be perceived as slightly overvalued. Still, for income investors who plan to buy and hold, Colgate-Palmolive is an attractive investment that shouldn't be overlooked.
