CL - Colgate-Palmolive: Loading Up Ahead Of Earnings

2024-04-16 05:00:05 ET

Summary

• Colgate-Palmolive's latest dividend increase of 4% and interest rates cut may be a positive sign for CL investors.
• Its margins are slowly improving, making it a more compelling investment than competitor Procter & Gamble.
• As the macroeconomic conditions improve in Latin America, the company is expected to report positive results for the Q1 2024 FY.

Over the past 10 years, Colgate-Palmolive ( CL ) drastically underperformed the S&P 500, but its latest dividend increase of 4% could breathe new life into the stock. The company is a Stalwart operating globally in more than 200 countries, everyone knows it and uses its products regularly. As discussed in my previous article , as the prospect of the rate cut looms, the company's dividend becomes more appealing. Moreover, the company is expected to report great Q1 2024 results, likely surpassing consensus estimates, although this has yet to be reflected in the stock price. With the company's margins gradually improving, I view it as a more compelling investment than its competitor Procter & Gamble ( PG )....

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