Colgate-Palmolive raises dividend, authorizes buyback

Published 20/03/2025, 21:42
Colgate-Palmolive raises dividend, authorizes buyback

NEW YORK - Colgate-Palmolive Company (NYSE:CL) announced an increase in its quarterly common stock cash dividend, raising it from $.50 to $.52 per share, effective in the second quarter of 2025. Shareholders of record as of April 17, 2025, will be eligible for the dividend payment scheduled for May 15, 2025. This adjustment pushes the annual dividend rate from $2.00 to $2.08 per share, representing a current dividend yield of 2.21%. According to InvestingPro data, the company has not only paid uninterrupted dividends since 1895 but has also increased its dividend for 35 consecutive years, demonstrating exceptional commitment to shareholder returns.

In addition to the dividend increase, the Board of Directors has authorized a new share repurchase program. Under this program, the company may buy back shares of its common stock up to an aggregate purchase price of $5 billion, replacing the previous repurchase program set in 2022. The repurchases are to be conducted sporadically through open market or privately negotiated transactions, subject to the Securities and Exchange Commission’s regulations. The new buyback initiative is set to begin after today. With a market capitalization of $73.3 billion and impressive gross profit margins of 60.6%, InvestingPro analysis indicates strong financial health, supporting the company’s ability to maintain its capital return programs.

As of January 31, 2025, Colgate-Palmolive had approximately 812 million shares of common stock outstanding. The combination of the dividend increase and the new share repurchase program underscores the company’s consistent practice of returning cash to its shareholders.

Colgate-Palmolive, known for its focus on Oral Care, Personal Care, Home Care, and Pet Nutrition, markets its products globally under renowned brands. The company highlights its commitment to sustainability and community wellbeing, including efforts to reduce plastic waste and conserve resources, as well as initiatives such as the Colgate Bright Smiles, Bright Futures program, which has reached about 1.8 billion children and their families since its inception.

This financial strategy reflects Colgate-Palmolive’s ongoing commitment to shareholder value and its confidence in the company’s financial strength. The information in this article is based on a press release statement from Colgate-Palmolive Company.

In other recent news, Cresco Labs announced its full-year 2024 financial results, revealing a 6% decrease in revenue to $724 million. Despite the revenue decline, the company reported a 15% improvement in adjusted EBITDA, reaching $200 million, and a significant 126% increase in operating cash flow. Cresco Labs is planning to expand its market presence by entering the Kentucky medical cannabis market and opening additional stores in Pennsylvania, Florida, and Ohio. The company is also focused on enhancing its production capabilities in Illinois and Pennsylvania to meet rising demand. Analysts have noted some near-term margin pressure but maintain a long-term margin target of 50%. The company has not reported any mergers or acquisitions but is strategically evaluating opportunities for expansion. Cresco Labs continues to prioritize operational efficiencies and cash generation as part of its strategic initiatives.

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