Colgate-Palmolive (CL) Remains Overweight as JPMorgan Sees Headwinds Easing in 2026

Colgate-Palmolive Company (NYSE:CL) is included among the 13 Best January Dividend Stocks to Invest in.

On December 18, JPMorgan raised its price target on Colgate-Palmolive Company (NYSE:CL) to $88 from $87 and kept an Overweight rating as part of its 2026 outlook. The firm said the setup heading into 2026 for beverages, household, and personal care remains difficult. JPMorgan still expects results to improve as “many headwinds from 2025 are lapped.” Those pressures include strain on low-income and Hispanic consumers and the impact of tariffs. The analyst also pointed to possible support for consumption and margins from lower tariffs and more favorable currency moves for multinational companies.

Colgate-Palmolive Company (NYSE:CL) belongs to a very small group known as the “Dividend Kings,” companies that have increased their dividends for at least 50 consecutive years. Colgate has raised its dividend for 63 straight years. Its focus on everyday essentials gives it some insulation in an uncertain economy. The company also aims to protect its market position and take share through higher investment in research and innovation, increased marketing behind core brands, and quicker responses to shifting consumer preferences.

Colgate has taken steps to manage higher raw material costs by raising prices, using tighter revenue management, and improving operating efficiency. There is also potential upside from Hill’s, its pet nutrition business. Pet adoption surged during the pandemic, and that trend could support demand longer than many expected.

Colgate-Palmolive Company (NYSE:CL) produces and sells a wide range of household, health care, personal care, and veterinary products.

While we acknowledge the potential of CL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.