When it comes to investing in the stock market, there are literally thousands of options. You will first need to decide what type of investment you are interested in. For some, this entails taking the risk associated with buying shares in the anticipation that the price will increase quickly and can be sold for a profit. The downside to this is that the share price can also dramatically, leaving you cash short. Others are income investors. They are not as concerned with a rapid increase in the price of the stock, as they are going to hang onto it for the long term. Income investors are looking for companies that have a history of paying dividends on a consistent basis. This allows them to keep their shares, while be assured that they will receive a per share return once of several times a year. Colgate-Palmolive has long been considered a solid long term dividend stock, and it still worthy of your consideration. Here are some reasons why that is the case.
The Track Record
When income investors look at stocks, they begin by examining the history of paying dividends. With Colgate-Palmolive, you get a stock that has been consistently paying out to its shareholders for than 25 consecutive years. That is quite a proven track record that you can literally bank on In addition to this, Colgate-Palmolive has actually raised its annual dividend every year for more than five decades. This puts it in a very select group of companies on the S&P 500 Index.
The reason that Colgate-Palmolive has been able to consistently pay out dividends is that it has developed such a diverse range of products over the years. It does not just rely on certain brands in a given industry. It has diversified to the point that they can still be a successful company even if a particular product has a few down years. It is the power of these combined brands that have powered the company to sustained growth for more than 100 years.
If you really to talk about a long term dividend stock, Colgate-Palmolive is where you want to begin. Since 1895, the company has had a policy of paying out dividends to each and every individual that has invested money with them. For the past 57 years, they have actually increased the amount of those dividend payments. This means that even in periods of a bad economy, Colgate-Palmolive has found a way to pay its shareholders. This is a solid income stock that you can literally go to the bank on.
The Business Explained
When you look at investing in any stock, you want to first take a look at the business itself. With Colgate-Palmolive, you get a business that dates all the way back to 1806. This makes it one of the longest-running and most profitable companies that have ever been listed on the stock market in the United States. It all started in New York City. Back then, William Colgate would sell starch, soap, and candles. All three were extremely useful items at that time, and they quickly carved out a niche in the market that continues to this day.
Through the decades, Colgate-Palmolive has expanded its product line. Today, it makes products like toothpaste, a variety of personal care products, home cleaning supplies, pet food, and so much more. These products are not focused on the U.S. market any longer. In fact, you will find products manufactured by Colgate-Palmolive sold in just about every country on the planet. This is because the product line is so diverse that nearly everyone alive can benefit from them. Some of the major brands that fall under the purview of this company include Colgate, Hill’s Science Diet, Palmolive, and much more. While the primary focus is on oral care, they have more than enough products to compete in other areas as well.
Colgate-Palmolive has a presence in more than 200 countries across the globe. If you count in sales generated around the world, they have reached $16 million in annual revenue. When you consider that number, it is easy to see why they have been able to pay out dividends on a consistent basis for so many years.
The company should continue to grow as it has assembled a portfolio of products that is popular around the world. In fact, it is one of the most recognized brands in the world, so the potential for future growth is strong. Even in years when earnings might dip slightly, investors can rest easy in the knowledge that they have consistently maintained profit margins in the mid-20 percent range. This is quite impressive when you stop to think about it, as there are many companies in the world that can come anywhere close to those numbers.
When you look at investing in any stock, you want to first take a look at the business itself. With Colgate-Palmolive, you get a business that dates all the way back to 1806. This makes it one of the longest-running and most profitable companies that has ever been listed on the stock market in the United States. It all started in New York City. Back then, William Colgate would sell starch, soap, and candles. All three were extremely useful items at that time, and they quickly carved out a niche in the market that continues to this day.
The company is growing around the world. This includes sales increasing on an annual basis in North America, Latin America, Europe, Asia, and Africa. The pet nutrition line of products is growing globally at a rate of 8 percent. Revenue for 2018 was flat, yet dividends were still paid out at $2.75 per share. This reflects an earnings per share of 21 percent. You really cannot go wrong with investing in Colgate-Palmolive. You will maintain your shares while enjoying a nice income every year that you maintain ownership.