The market continues to establish new historical maximums.
Most of this incredible execution was promoted by growth actions, while many stable and low betas actions submerged value.
Today, I will examine one of these stable swirls overlooked and explore what makes it a lucrative opportunity.
10 actions that we like more than Colgate-Palmolive ›
The first is the first, most of the kings of dividends (shares that have increased dividends for at least 50 years in a row) will not provide investors multibra returns in the short term.
In fact, they may have difficulty maintaining the market rhythm as a whole, particularly when it is functioning as it has been until now in 2025. However, with the passion market in the “bubble” territory, stability and passive income provided by certain kings of dividends can serve as a refuge for investors looking for safer options.
This idea is especially true when King Dividend is available to buy in a unique assessment in the decade, which is the case of consumer goods Juggernaut Colgate-Palmolive (NYSE: CL) today.
Here is why the company is my favorite king of dividends to buy at this time.
Image Source: Getty Images.
Colgate-Palmolive has delivered total yields of 12% per year since 1990, becoming a 55 Bagger during that period.
Now a true giant of consumer goods, the high growth days of Colgate can be behind it, but it can still be a lucrative investment for adequate investors.
The main Colgate differentiator are its leading brands in categories. The company is the world leader of market share in toothpaste, manual toothbrushes, pet nutrition in veterinary clinics and liquid hands soap.
In addition, Colgate has the number 2 participation in four other categories: mouthwash, bar soap, liquid fabric softeners and hand washing liquids.
In addition to its Colgate and Palmolive homonym brands, the company also houses a variety of other known labels, including Hill’s Pet Food, Softsoap, Irish Spring, Hello, Tom’s, Ajax and Fabulos, among others.
Image Source: Presentation of the Colgate-Palmolive investor.
Colgate not only has a powerful brand pit in each of the categories of consumer products in which he sells, but most of his products are essential and repeated purchases. These consistent sales help Colgate be one of the most stable actions in the market, which explains how the company has raised its dividend for 61 consecutive years.
While the company does not make many massive acquisitions or immerse itself in categories of fully unrelated products, it is masterful to find acquisitions of niche Tuck-in and reinvent its already successful products.
This notion is evident in the impressive 33% return of capital invested (ROIC) of the company. Measurement of the profitability that Colgate generates from its debt and equity, this high ROIC shows that the company thrives when it reinvested in its operations.
This top -level roic is especially powerful considering that Colgate spent almost $ 4 billion on acquisitions in the last decade.
While many aging actions are excellent for illuminating cash in flames when they try to integrate new acquisitions, Colgate has a long history of generating excessive profits with success of their new businesses and product iterations.
This ability to invest in new areas of growth and defend its market share with new product versions makes the long -term perspective of Colgate as stable as ever.
The best for investors, despite the power of the Colgate and Alto Roic brand, the company currently lies approximately 20 times the free cash flow (FCF), well below its historical averages.
CL Data price price flow and dividend yield by Ycharts
Meanwhile, the 2.5% dividend yield of the company is also higher than usual, which makes it particularly attractive to today’s prices.
If I plug the Colgate data in a cash flow calculator with reverse discount, I find that the company would have to increase its FCF by annual 4.5% to justify the current price of its shares.
Taking into account that the company increased its organic sales and FCF by 7% and 8% in the last five years, I do not think it is unworthy to believe that Colgate can clear this obstacle of 4.5%.
The cherry at the top for investors?
Despite paying a respectable 2.5% dividend yield, Colgate only uses 48% of your FCF to finance your dividend payments, leaving a lot of space for future increases.
And if that is not enough, management has constantly reduced the company’s shares in circulation in 1% per year, playing more investors.
Ultimately, if you are an investor seeking market delivery or the possibility of a mega-multibagger, Colgate-Palmolive is not the choice for you.
However, if you are looking for a stable Eddie dividends to a powerful brand pit and the ability to expand and innovate in a long-term profitable way, Colgate-Palmolive seems a unique opportunity in the decade at the current price.
Before buying shares in Colgate-Palmolive, consider this:
He Motley Fool’s actions advisor The team of analysts has just identified what they think are the 10 best actions For investors buy now … and Colgate-Palmolive was not one of them. The 10 actions that made the cut could produce returns of monsters in the coming years.
Consider when Netflix He made this list on December 17, 2004 … if he invested $ 1,000 at the time of our recommendation, You would have $ 652,872!* Or when Nvidia He made this list on April 15, 2005 … if he invested $ 1,000 at the time of our recommendation, You would have $ 1,092,280!*
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*Returns of the Actions Advisor as of September 22, 2025
Josh Kohn-Lindquist has no position in any of the aforementioned actions. Motley Fool has positions and recommends Colgate-Palmolive. The Motley Fool has a dissemination policy.
A unique opportunity in the decade: 1 magnificent S&P 500 Dividend King Down 26% to buy at this time was originally posted by Motley Fool
(Tagstotranslate) Dividend Kings (T) Colgate-Palmolive (T) Dividend King
