Why Shares of Colgate-Palmolive Are a Must Buy for the Long Haul

Colgate-Palmolive's (CL) core product category is built to last forever, making this stock a safe growth and income stalwart that belongs in investors' retirement portfolios.

The company's divisions are home care, oral care, personal care and pet nutrition, and its products are sold in more than 200 countries and territories.

There will always be a need to buy soap, toothpaste and other personal-care products, which makes shares of Colgate-Palmolive a compelling investment option.

In addition to its position as a company that offers consumer essentials, Colgate-Palmolive also offers a 2.37% dividend yield and a track record of annual dividend increases for 52 consecutive years.

That payout ratio record is one that few other companies can beat, and it speaks volumes about the financial ability of the company to pay its shareholders every year without fail.

With operating cash flow of more than $3 billion in just the past 12 months, Colgate-Palmolive can continue to pay rich dividends for the long term.

This could offer investors an alternative at a time when banks offer meager interest.

Despite solid results and expected annual average earnings growth of nearly 8.48%, shares of Colgate-Palmolive have barely budged this year.

The stock, is in fact, at nearly 2015 levels, setting it up for 15%-plus gains if the company delivers more than 8% earnings growth next year, along with an expected revenue increase of at least 4%.

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The author is an independent contributor who at the time of publication owned none of the stocks mentioned.

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