Colgate Gift to Shareholders: Dividend Up - TheStreet

Colgate Gift to Shareholders: Dividend Up

Colgate-Palmolive's positive outlook has lead the company to not only raise its dividend by 20% -- but also proceed with a new share buyback program.
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Updated from Thursday, Feb. 4

NEW YORK (

TheStreet

) --

Colgate-Palmolive's

(CL) - Get Report

positive outlook has lead the company to not only raise its dividend by 20% -- but also proceed with a new share buyback program.

Colgate-Palmolive on Thursday increased the ongoing quarterly common stock cash dividend by 20%.

The increase will be effective as of the second quarter, 2010.

The new rate of 53 cents a share is up from 44 cents. The board declared that the second-quarter dividend is to be paid on May 14 to shareholders of record as of April 26, 2010.

On an annual basis, the new dividend rate is $2.03 vs. $1.72 per share previously. Colgate-Palmolive has paid uninterrupted dividends on its common stock since 1895.

Colgate-Palmolive's board on Feb. 4 also authorized a new share repurchase program; the company plans to purchase 40 million common shares over the next two years. As of December 31, 2009, the company had about 494 million shares of common stock outstanding.

Colgate-Palmolive stock settled down 1.4% at $79.70.

-- Reported by Andrea Tse in New York

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