Colgate-Palmolive Company
(NYSE: CL)Share Price and News

About Colgate

Colgate-Palmolive is a multinational consumer products company with a core focus on oral hygiene, personal care, and household cleaning. Headquartered in the United States, the company operates in over 200 countries, including significant markets across Asia, Latin America, and Europe.

Colgate's product range includes well-known brands such as Colgate toothpaste, Palmolive soaps, and Softsoap, alongside pet nutrition products under the Hill's brand.

The company's ability to innovate within its categories, such as developing toothpaste with natural ingredients or eco-friendly packaging, has helped it retain customer loyalty and adapt to changing consumer preferences.

Colgate's scale and global distribution network provide a competitive advantage, enabling it to penetrate diverse markets effectively while maintaining consistent product availability and quality.

Colgate's Company History

Colgate's origins date back to 1806 when William Colgate founded a starch, soap, and candle business on Dutch Street in New York City. He ran the company until his death in 1857 when his son Samuel took over.

The company quickly grew, introducing toothpaste in the late 19th century and expanding its product line over the decades. By 1906, it had over 800 different products.

A pivotal moment came in 1928 with the merger of Colgate & Company and Palmolive-Peet, creating the modern Colgate-Palmolive. Palmolive traces its origins to 1864 when B.J. Johnson opened a soap factory in Wisconsin. The company listed on the NYSE in 1930.

Since then, the company has expanded through acquisitions, including the purchase of Hill's Pet Nutrition in 1976, which broadened its footprint in the lucrative pet care market. It has also introduced 'home grown' products including the Ajax cleaner in 1947 and Palmolive dishwashing liquid in 1966. In recent years, it has expanded into professional skic care, buying PCA Skin and EltaMD in 2018.

Colgate has been paying dividends to shareholders for 128 years and has raised dividends consistently for the past 60 years. It has returned US$28bn to shareholders, through dividends and stock buybacks, over the last decade.

Future Outlook of Colgate (NYSE: CL)

Looking ahead, Colgate's future appears cautious, with expected flat sales for 2025 influenced by foreign exchange pressures and shifts in its product portfolio. The company reported mixed financial results in its latest quarter, with modest organic growth offset by a slight decline in total revenue due to foreign exchange headwinds and strategic exits from certain product lines.

Sector-wide trends support Colgate's longer-term outlook, as demand for essential consumer goods tends to remain resilient even during economic downturns. Moreover, Colgate is actively pursuing sustainability goals, such as reducing plastic packaging by increasing recycled content and launching refillable products.

In our view, a key growth area will be expansion into the pet care area. Right now, pet care (specifically the Hills range) is only 20% of total sales, it is growing faster than any other segment.

The company anticipates further sales growth as it captures more of the market, having undertaken the purchase of brownfield facilities from other companies and building of its own facilities. Fortune Business Insights estimates that the market is worth US$246.7bn right now and will grow to US$368.9bn by 2030 – representing a CAGR of 5.92%.

In 2025, the company has guided to flat net sales but organic sales growth to be 3-5% including the impact of the planned exit from 'private label' nutritional products. EPS is expeted to be up 'mid-single digits'.

Is Colgate a Good Stock to Buy?

For investors seeking a defensive stock with steady income, Colgate offers several attractive features. Its dividend yield, typically between 2-3% (very good for a US company), is supported by consistent free cash flow generation and a long history of increasing dividend payments, signalling management's commitment to returning value to shareholders.

The stock is usually valued at a premium relative to other sectors, reflecting its stable earnings and low volatility. Its position as a consumer staples leader with an increasing focus on sustainability makes it a solid addition to a diversified portfolio, particularly for those seeking exposure to stable global brands.

The company's ongoing focus on innovation and sustainability further supports its growth potential in an evolving consumer landscape. However, investors should be aware that Colgate's growth may be moderate compared to higher-risk, higher-reward stocks.