Analyst Recommends This Consumer Stock With Over 60 Years of Dividend Increases

We recently published Top 10 Stock Recommendations You Can’t Miss Amid Growing AI Bubble Fears. Colgate-Palmolive Company (NYSE:CL) is one of the top recommended stocks.

Jason Snipe, the Founder and Chief Investment Officer of Odyssey Capital Advisors, said in a latest program on CNBC that he likes Colgate and believes the company will see earnings recovery into next year.

“I like 3 to 5% organic growth, sales growth for the name, raising dividend in 60 straight years. So the dividend now is at two and a half percent. Their management team also is focusing, has multiple levers on managing costs and extracting inefficiencies. So I think for me this is one that obviously has been in the penalty box so far this year, but I think that earnings recovery will come through into next year.”

Diamond Hill Large Cap Strategy stated the following regarding Colgate-Palmolive Company (NYSE:CL) in its Q4 2024 investor letter:

“As valuations have continued rising and the economic cycle has gotten relatively long in the tooth, we’ve thought carefully about where and how we are exposed to more cyclical stocks. As such, we initiated just two new positions in Q4: Colgate-Palmolive Company (NYSE:CL) and the aforementioned lululemon. Colgate-Palmolive is a high-quality business with leading positions in oral care, home products and pet nutrition. Historically, the company has allocated capital well, and it produces significant free cash flows. Shares were pressured in Q4 primarily, we believe, in sympathy with near-term macroeconomic concerns rather than any fundamental issues at the business. We consequently capitalized on the underperformance and compelling valuation to start a position.”

While we acknowledge the potential of CL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.