What Colgate-Palmolive actually does
Colgate-Palmolive is a consumer-products company founded in 1806 by William Colgate in New York City, where it is still headquartered. It is best known for oral care, such as Colgate toothpaste and toothbrushes, and also sells soap, shower gels and household cleaners under brands like Palmolive and Softsoap.
A large and profitable division is Hill’s Pet Nutrition, which makes prescription and premium pet food.
How the business makes money
Colgate sells inexpensive, frequently bought products in more than 200 countries and territories. It earns a particularly strong position in oral care, where brand trust and dentist recommendations support pricing. A big share of sales comes from emerging markets, which bring growth along with currency swings.
The dividend story
Colgate-Palmolive has increased its dividend every year for more than six decades, making it a Dividend King. It pays quarterly. Its yield is moderate and the raises are regular and unspectacular.
The record shows how steady demand for everyday products supports reliable income.
What to keep an eye on
- Currencies. Many sales are in emerging-market currencies.
- Raw materials. Resins, oils and packaging costs vary.
- Private labels and competition. Pricing power can be tested.
- Slow growth. It is a mature business, so growth comes from price and mix.
Quick take
Colgate-Palmolive is a classic defensive dividend payer with a very long increase record and a dependable core business.