Consumer product giant Colgate-Palmolive (CL) is having a fairly flat year in 2012. Shares of the $45 billion toothpaste and pet food maker are only up 1.7% year-to-date, a far cry from the performance that investors have been able to wring out of the broad market.
But in spite of the tepid returns, there's reason to pay attention to this stock right now.Colgate-Palmolive owns some of the biggest household product brands in the business, from namesake Colgate and Palmolive to Softsoap, Speed Stick, and Hill's Science Diet pet food. That diverse group of staples means that the firm is able to attract a sticky customer base that's relatively resistant to pricing headwinds. Massive international diversification means that the firm has exposure to increasing demand overseas; the flip side is that the CL suffers when a strong dollar makes profits earned in other currencies look less appealing. CL is a prototypical blue chip, and it has a balance sheet that reflects that. The firm generates a significant amount of cash -- and pays out a 2.47% dividend yield. That yield increased yesterday thanks to a 6.9% dividend hike. The move pushes CL's quarterly payout to 62 cents per share. Colgate, one of 10 New Dividend Aristocrats for 2012, was also featured recently in "7 Dividend Stocks Promising Growth and Protection." Follow @stockpickr
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV