Key Takeaways
📈 Dividend Yield and Growth: Colgate-Palmolive offers a reliable 2.22% yield, marking 61 straight years of dividend increases.
💰 Cash Flow: Strong cash generation with $4.1 billion in operating cash flow supports dividend stability.
📊 Analyst Ratings: Analysts have mixed views, with targets ranging from $86 to $112, averaging a hold rating at $102.17.
📝 Earnings Report Summary: Q1 EPS slightly beat expectations at $0.91, despite softer sales due to pricing pressures in key markets.
👥 Management Team: Led by experienced CEO Noel Wallace, emphasizing sustainability, innovation, and disciplined growth.
Last Update 4/24/25
Colgate-Palmolive (CL) has been a reliable player in the consumer goods space for decades, delivering steady performance through market cycles. With a diverse portfolio that includes oral care, personal care, and pet nutrition, it has maintained global relevance and strong brand loyalty. Its management team continues to steer the company with a clear focus on sustainable growth and operational discipline.
The stock currently trades around $92, supported by consistent cash flow, a forward dividend yield of 2.22%, and a payout ratio of just over 56%. Recent analyst activity reflects a balanced outlook, with a consensus price target of $102.17. From its 61-year dividend growth streak to its thoughtful response to economic and regulatory challenges, Colgate remains a name investors have relied on for both income and stability.
Recent Events
Colgate’s earnings call is set for April 25, and investors are keeping an eye on the numbers. The stock recently closed at $92.70, down a bit on the day, though it gained back a little ground after hours. That kind of price action isn’t out of the ordinary for Colgate—it tends to move within a pretty tight range, which is exactly what a lot of income-focused investors prefer.
Under the hood, the financials are looking steady. Total cash stands at $1.26 billion, while total debt has climbed to $8.51 billion. On paper, that might look like a red flag, but Colgate has a track record of handling leverage with care. The business churns out reliable cash flow, and its operating margins and returns remain solid. Net profit margin is sitting at 14.37%, with operating margin at 20.93%. These numbers speak to a well-oiled machine that’s used to squeezing a lot out of every dollar.
The return on equity is an eye-popping 406%, largely due to the company’s capital structure and lean book value. It’s not about asset-heavy operations here—it’s about brand power, efficiency, and scale.
Key Dividend Metrics
📈 Forward Dividend Yield: 2.22%
💸 Annual Dividend Rate: $2.08 per share
📅 Ex-Dividend Date: April 17, 2025
📊 Payout Ratio: 56.41%
📉 5-Year Average Dividend Yield: 2.29%
🔁 Dividend Growth Streak: 61 years and counting
📅 Next Payout Date: May 15, 2025
Dividend Overview
For investors looking for a dividend you can set your watch to, Colgate delivers. This company hasn’t missed a payout since the 1960s, and it’s raised the dividend every single year for over 60 years. That kind of reliability is rare, and it gives long-term holders peace of mind that few other companies can match.
Right now, the forward yield sits at 2.22%, which is a touch below its five-year average of 2.29%. That dip isn’t a concern—it just reflects a stock price that’s been climbing a bit faster than the dividend. The core message here is simple: the yield is solid, and it’s backed by cash flows that are as dependable as the sunrise.
The dividend payout ratio is sitting at 56.41%, a healthy spot that leaves room for reinvestment, future increases, and protection during economic downturns. Colgate’s business model helps too—it doesn’t need big capital expenditures to grow, so it can keep funneling cash back to shareholders.
Dividend Growth and Safety
Colgate may not hand out eye-popping dividend raises every year, but what it offers is just as valuable: consistency. This is the kind of company that rewards patience. The dividend won’t grow by double digits overnight, but over time, the steady increases add up—especially when reinvested.
With $4.1 billion in operating cash flow and $3.4 billion in free cash flow, the dividend is well-covered. Even with a sizable debt load, the company generates more than enough cash to keep things moving forward. That’s the kind of cushion investors like to see.
One of the most comforting numbers? A beta of just 0.40. That means the stock tends to move less than the broader market, which is exactly what income investors want in turbulent times. When markets swing wildly, Colgate tends to hold its ground, quietly compounding and paying out.
There’s a lot to be said for owning a business that keeps it simple. Sell everyday items people need, keep margins healthy, and return capital to shareholders. That’s Colgate’s game plan—and it’s one that’s worked for generations.
Cash Flow Statement
Colgate-Palmolive continues to show strength in its ability to generate cash, with trailing twelve-month (TTM) operating cash flow coming in at $4.1 billion. That’s a notable improvement from the previous year’s $3.7 billion and marks a solid upward trend over the past few years. Free cash flow also saw a healthy jump to $3.5 billion, up from $3.0 billion a year earlier. This kind of growth in core cash generation underpins the company’s long-standing dividend reliability and gives it breathing room even with heavy financing activity.
On the investing side, cash outflows have moderated, totaling $534 million for the TTM period—far lower than the $1.6 billion seen in 2021. Capital expenditures remained relatively flat at $561 million. Financing cash flow was deeply negative at $3.4 billion, reflecting a combination of debt repayments and significant share repurchases. Colgate paid down $503 million in debt while buying back $1.7 billion in stock, continuing its focus on shareholder returns. Despite these outflows, the company’s end cash position rose to $1.1 billion, showing it’s managing liquidity well without compromising its financial footing.
Analyst Ratings
Colgate-Palmolive has been under the spotlight recently, with analysts making several adjustments to their outlooks. 🧾 UBS nudged its price target upward from $105 to $109 while reaffirming a buy rating. This signals confidence in Colgate’s consistent performance, even in a slower-growth environment. Meanwhile, Barclays took a more cautious stance, lowering its target from $89 to $86, pointing to broader concerns in the consumer staples space.
📉 JPMorgan also tweaked its forecast, trimming the target price from $99 to $95 but keeping an overweight rating in place. That suggests they still see value ahead, just with tempered expectations. Over at Piper Sandler, there was a subtle shift as well—their analysts shaved the target slightly from $108 to $107, but stayed bullish with an overweight rating.
📊 The current consensus rating on the stock sits at a hold, with the average analyst price target coming in at $102.17. That gives Colgate a bit of room to move higher from where it’s trading now. On the range, the lowest target among major firms is $86 and the highest is $112, showing a fair amount of divergence depending on how each firm views the near-term pressures on household product demand and input costs.
Earning Report Summary
Colgate-Palmolive just rolled out its first-quarter numbers for 2025, and while the headline results weren’t perfect, there’s still plenty for long-term investors to chew on. The company came in a little shy on revenue but managed to beat expectations on the bottom line, showing it’s still navigating this tricky environment with some finesse.
Sales Take a Breather in Key Markets
Total net sales landed at $4.94 billion, just under what Wall Street was looking for. The softness showed up most clearly in North and Latin America, where back-to-back price hikes seem to have pushed some customers toward more affordable alternatives. In Latin America, sales dropped by over 7%, while North America saw a slight dip of about 1%. It’s a reflection of what happens when household budgets get tight—consumers start making different choices.
That said, not all segments were under pressure. The pet nutrition business, Hill’s, delivered a solid quarter with a 2.3% bump in sales. People may cut back on certain things, but pets still get fed well—and Colgate’s betting that this trend has staying power.
EPS Beats the Mark
Despite the revenue miss, earnings per share came in at $0.91, a bit ahead of the $0.89 consensus. That’s thanks in part to a nearly 2% increase in prices and a modest boost in volume. It’s clear Colgate is still able to hold onto its pricing power, at least for now.
CEO Noel Wallace didn’t sugarcoat the challenges, but he also made it clear that the company is staying focused on its long-term game. He pointed out that they’re continuing to invest in future growth while staying nimble in how they manage costs. That balance—between maintaining margin and keeping the pipeline of innovation going—is something Colgate has always done well.
Looking Ahead
The company isn’t expecting a revenue pop in 2025. In fact, they’re forecasting flat growth year over year, especially with currency headwinds expected to knock off a few percentage points. But Colgate isn’t standing still. Leadership is already looking at ways to handle potential tariffs on goods made in Mexico, like shifting some production back to the U.S. or leaning more on manufacturing partners.
CFO Stan Sutula said they’re not building those tariff impacts into the outlook just yet, but they’re planning for them all the same. It’s a wait-and-see game, but it sounds like they’ve got some cards in hand if the need arises.
So while it wasn’t a blockbuster quarter, Colgate did what it usually does—kept things steady, made smart moves, and reminded investors why it’s long been a pillar in income-focused portfolios.
Chart Analysis
The stock chart for CL over the past year reveals a narrative of resilience with some clear turning points that speak to shifting investor sentiment. The blend of technical indicators—like moving averages, volume, and RSI—helps paint a more complete picture of where this name has been and how it’s being perceived lately.
Moving Averages Show Shifting Momentum
For a good part of the year, the 50-day moving average (in red) stayed comfortably above the 200-day moving average (in blue), which usually points to bullish momentum. That dynamic flipped around late October, when the price started trending down, pulling the 50-day below the 200-day. This kind of crossover often signals a change in tone—from optimism to caution.
Lately though, the stock price has worked its way back above both moving averages, and the 50-day is starting to curl up again. It hasn’t crossed back over the 200-day just yet, but the price hugging both lines suggests the market is trying to make up its mind. The chart is starting to look like it’s forming a base after a few months of indecision.
Volume and Price Action Hint at Accumulation
Volume patterns here are telling. Through the downtrend from late October to January, volume spikes were more common on red days—suggesting some aggressive selling. But that started to shift by February. Since then, volume on green days has picked up, which often points to buyers quietly stepping in.
The recent rally attempts have been supported by decent volume, which adds weight to the idea that there’s some accumulation happening. The price has been making higher lows since January and is starting to challenge short-term resistance around the mid-$90s level.
RSI Stays Balanced, Avoiding Extremes
Looking at the Relative Strength Index (RSI), the stock has mostly avoided the overheated zone above 70 and rarely dipped deep into oversold territory below 30. That’s generally a sign of stability. The few times it got close to 70 were followed by mild pullbacks, showing that traders are keeping the stock within a healthy range.
Right now, the RSI is sitting just above 50, which suggests there’s room for further upside without hitting resistance from momentum traders. This neutral reading matches what the price action is suggesting: a stock that’s settling into a new phase after weathering some volatility.
The overall read from this chart is one of quiet rebuilding. The worst of the decline appears to be in the rearview, and there’s a calm, steady tone to the recent movements. While there’s no explosive breakout, the chart is beginning to show signs of a stronger foundation forming.
Management Team
Colgate-Palmolive is led by Noel Wallace, who has been steering the company as Chairman, President, and CEO since 2018. Under his leadership, the company has emphasized innovation, efficiency, and global reach, with a steady hand through uncertain economic cycles. Wallace has prioritized sustainability and digital transformation as key growth drivers. Supporting him is a well-rounded executive team that blends financial discipline with strategic foresight. Stanley Sutula serves as Chief Financial Officer, bringing a strong background in financial operations and planning, while other key roles are filled by long-tenured executives with deep experience in international markets, legal frameworks, and supply chain oversight.
The team appears aligned in its approach, maintaining a disciplined capital allocation strategy while investing in long-term brand equity. With a steady track record of performance and clarity in communication, Colgate’s leadership continues to earn the trust of both the market and its workforce.
Valuation and Stock Performance
The current share price of Colgate-Palmolive sits near $92.70, resting in the middle of its 52-week range between $85.32 and $109.30. The company tends to trade at a premium, which is common for defensive, cash-flow-rich businesses with a long dividend track record. Valuation multiples such as the trailing P/E ratio, hovering around 26.75, suggest that the stock isn’t cheap—but for many investors, that premium reflects the quality and consistency of the business.
The stock has generally trended higher over time, although it has experienced pullbacks in periods of broader market stress or sector rotation. The 5-year return of over 30 percent underscores the compound effect of modest capital appreciation combined with reinvested dividends. For those focused on preservation of capital and long-term income, this kind of performance can be especially appealing. The average analyst price target stands at $102.17, pointing to a measured but positive outlook. While some see limited upside from current levels, others view Colgate as a dependable anchor in a well-balanced portfolio.
Risks and Considerations
Despite its strengths, Colgate-Palmolive isn’t without risk. With operations spread across more than 200 countries and territories, currency volatility remains a constant factor. A strong dollar can weigh on overseas earnings and impact reported results. Inflationary pressures on raw materials like palm oil, plastics, and packaging supplies also remain a concern, particularly when cost recovery through pricing becomes challenging in competitive markets.
The company is also navigating environmental and social governance pressures, especially in regard to packaging waste and sustainable sourcing. Consumer preferences are shifting, and regulatory scrutiny is increasing. Recent legal attention around ingredients used in its toothpaste products underscores the importance of maintaining high product safety standards. Reputational risks tied to such issues can impact not just sales, but long-term brand equity.
There’s also the matter of geopolitical instability in certain regions, which can disrupt supply chains or local operations. While Colgate does a commendable job of managing through these issues, they’re always part of the backdrop for any global consumer products business.
Final Thoughts
Colgate-Palmolive represents a balance of stability, brand strength, and global scale. Its management team has kept the company on a path of steady progress, investing in the right areas while keeping an eye on shareholder returns. The valuation may seem rich to some, but for those prioritizing resilience and reliable income, it’s often a price worth paying.
The business model holds up well during economic cycles, offering everyday products that don’t go out of style or demand. Risks exist, as they do for any global operator, but Colgate’s long history of execution suggests it’s well prepared to meet them head-on.
For investors who value consistency and cash flow over drama and speculation, this is the kind of stock that delivers peace of mind and a growing dividend stream year after year.